DarioHealth (DRIO) Tops Q1 EPS by 12c, Revenues Miss

May 17, 2021 4:32 PM EDT
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Price: $21.93 --0%

EPS Growth %: +41.4%

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DarioHealth (NASDAQ: DRIO) reported Q1 EPS of ($0.92), $0.12 better than the analyst estimate of ($1.04). Revenue for the quarter came in at $3.6 million versus the consensus estimate of $3.96 million.

  • Revenues for the first quarter ended March 31, 2021 were $3.6 million, a 73% sequential increase from fourth quarter ended December 31, 2020, and a 116% increase from the $1.7 million in the first quarter ended March 31, 2020.
  • Revenues generated during the first quarter ended March 31, 2021 were derived mainly from the sales of DarioHealth's products and services and from the consolidated revenues of Upright commencing February 2, 2021.
  • Gross profit in the first quarter of 2021 was $1,081,000, an increase of $302,000, or 38.8%, compared to gross profit of $779,000 in the first quarter of 2020. Gross profit margin was 30.1% in the first quarter of 2021 as compared to 46.7% in the first quarter of 2020.
  • Pro-forma gross profit, excluding $526,000 of amortization of expenses related to the acquisition of Upright Technologies, was $1.6 million. Pro forma gross profit margin, excluding amortization of expenses related to the acquisition of Upright Technologies, was 44.7% in the first quarter of 2021, a sequential increase from 24.2% in Q4 2020.
  • Total operating expenses for the first quarter of 2021 were $15.4 million compared to $10.9 million for the first quarter of 2020, an increase of $4.5 million, or 41.6%. The increase resulted from an increase in our research and development activities, sales and marketing expenses, and from the consolidation of Upright Technologies, partially offset by a reduction in stock-based compensation.
  • Operating loss for the first quarter of 2021 was $14.3 million, an increase of $4.2 million, or 41.7%, compared to the $10.1 million operating loss in the first quarter of 2020. This increase was mainly due to the increase in our operating expenses.
  • Net loss was $15.0 million in the first quarter of 2021, an increase of $5.1 million, or 51.3%, compared to the $9.9 million net loss in the first quarter of 2020.
  • Cash and cash equivalents totaled $81.1 million at March 31, 2021.

"During the first quarter, we delivered exceptional financial and operating results, driven by balanced contribution from organic growth and the acquisition of Upright Technologies, which we closed on February 2, 2021," stated Erez Raphael, Chief Executive Officer of Dario. "Our first quarter 2021 revenue of $3.6 million represents growth of 73% sequentially from the fourth quarter of 2020, and 116% year-over-year. Perhaps more importantly, our first quarter revenues, assuming we acquired Upright Technologies as of January 1, 2021, would have been $4.7 million. At the same time, our gross margin percentage, excluding acquisition related amortization, significantly improved to 44.7% of revenues, as compared to 24.2% in Q4 2020. With over $81 million of cash at the end of the first quarter of 2021, we believe that we are well funded to accelerate our growth trajectory.

"Our acquisition of Upright Technologies allows us to address one of the most significant pain points for health care payers – musculoskeletal and related pain conditions. This acquisition is being integrated in our operations and is already generating significant interest from potential customers in need of a novel MSK solution. We will continue to expand into additional chronic conditions supporting our vision of being the most comprehensive digital health solution in the industry. I am pleased with our increasing U.S. sales momentum during the first quarter of 2021. We were especially encouraged by our enrollment, which exceeded 40% and was accomplished at a faster than anticipated rate. We look forward to a very successful year," Mr. Raphael concluded.

"The three pillars of our growth – pivot to Business-to-Business-to-Consumer (B2B2C), transition to a high margin software-as-a-service (SaaS) model, and expansion into additional chronic conditions – are serving us well and are clearly resonating in the marketplace," stated Rick Anderson, President and General Manager of North America. "We launched three accounts during the quarter, including two new employers. Our pipeline currently stands in excess of $700 million and growing especially in our employer market segment. We believe this speaks not only to the breadth and differentiation of our digital health offering, but also to the world-class team and support infrastructure that we have assembled in the U.S."

For earnings history and earnings-related data on DarioHealth (DRIO) click here.



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