US-based digital health company DarioHealth has reported a net loss attributable to stockholders of $16.9m in the third quarter of 2023 (Q3 2023), versus $16.13bn in the same period last year.
The attributable net loss decreased to $48m in the first nine months of 2023, when compared to $50.95m in the previous year. This was largely due to a reduction in operating expenses, which fell by 12.6% to $47.83m from $54.72m over the period.
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The company’s revenues for the July-September 2023 quarter were $3.52m, a 46.7% decrease from $6.6m in the prior year.
This was mainly the result of a reduction in revenues from commercial strategic partnerships, which fell to $209,000 in Q3 2023 from $3.15m a year ago.
Commercial B2B2C revenues, constituting recurring revenues from employers and health plans, grew to $1.28m from $1.05m.
DarioHealth CEO Erez Raphael said: “While our strategic revenue is at a run rate of approximately $6.3m a year, Q3 revenues were only $209,000, which negatively impacted our revenue versus the prior quarter and Q3 2022.
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By GlobalData“Our relationship with Sanofi is unchanged and we anticipate that this annual revenue will continue into 2024, as part of the $30m agreement signed in 2022, with the possibility for expansion.”
Total operating expenses for the three-month period ending 30 September 2023 were $16.2m, down from $16.4m in the corresponding quarter of 2022.
This was driven by a drop in sales and marketing expenses, which offset the rise in expenses related to research and development, and general and administrative purposes.
Pro-forma gross profit, when discounting $1.1m of amortisation expenses tied to the acquisition of technology, was $1.72m, or 48.8% of revenues in Q3 2023.
When compared to Q3 2022, the variable was $2.9m, or 44% of revenues.
Raphael added: “We ended the quarter in a strong financial position, with $44m of cash and cash equivalents, and we anticipate that our growing B2B revenue, combined with our continued expense management, will enable us to continue to execute against our strategy.”
