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.
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.
“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."
