DRIO Earnings Prediction
The chart below shows how DRIO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DRIO sees a +18.35% change in stock price 10 days leading up to the earnings, and a -3.19% change 10 days following the report. On the earnings day itself, the stock moves by -1.28%. This data can give you a slight idea of what to expect for the next quarter's release.
DRIO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
7.42M
111.00%
18.67%
Gross Margin
52.23%
201.21%
18.54%
Operating Margin
-156.42%
-64.60%
-39.12%
Net Margin
-166.11%
-62.85%
-23.66%
EPS
-0.36
-38.98%
200.00%
No Data Available
DRIO Earnings Analysis
DarioHealth Corp. Common Stock Corporation (DRIO.O) Earnings Conference Call
Positive
Impressive Revenue Increase: 1. Significant Revenue Growth: DarioHealth reported $7.42 million in revenue for Q3 2024, marking an 18.7% increase from Q2 2024 and an impressive 111% year-over-year growth.
Gross Margin Improvement: 2. High Gross Margins: The gross margins for the B2B2C business rose to 83%, with overall business gross margins reaching 70% on a non-GAAP basis, reflecting improved revenue quality and predictability.
Client Base Expansion: 3. Client Acquisition Momentum: DarioHealth secured 10 new client contracts in Q3 2024, contributing to an expected total of 25 new client signings for the year, representing a 35% growth in their client base.
Operating Expense Reduction: 4. Reduction in Operating Expenses: Non-GAAP operating expenses decreased to $12.3 million, a 15.9% sequential decline from Q2 2024, demonstrating effective cost management strategies post-acquisition of Twill.
Cash Flow Breakeven Projection: 5. Projected Cash Flow Breakeven: DarioHealth is on track to achieve a cash flow breakeven run rate by the end of 2025, with a projected revenue run rate of $50 million by the end of next year.
Negative
Operating Losses Reported: 1. Increased Operating Losses: DarioHealth reported a non-GAAP operating loss of $12.3 million in Q3 2024, despite a 15.9% sequential decline from Q2 2024, indicating ongoing financial challenges.
High Operating Expenses: 2. High Operating Expenses: The company maintained a high operating expense level of $12.3 million, which, while reduced, still reflects significant costs associated with integrating Twill and ongoing operations.
Cash Flow Breakeven Goal: 3. Cash Flow Breakeven Target: DarioHealth is targeting a cash flow breakeven run rate by the end of 2025, suggesting that current financial performance is not yet sustainable without further improvements.
Unpredictable Revenue Transition: 4. Uncertain Revenue Growth: Despite a reported 111% year-over-year revenue growth, the company acknowledged that the transition from milestone payments to a subscription model in the pharma channel could create revenue unpredictability.
Client Revenue Challenges: 5. Client Revenue Realization Challenges: The company has faced difficulties in fully realizing revenues from new client partnerships, indicating potential inefficiencies in converting client contracts into actual revenue streams.
DRIO FAQs
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DRIO Earning Call Sentiment
DarioHealth Corp. (DRIO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DRIO.O
3.32%Positive
The earnings call summary reflects strong financial performance with 111% YoY revenue growth and improved gross margins. The company's strategic shift towards a recurring revenue model and cost management initiatives are positive indicators. The Q&A section highlighted potential growth in B2B2C revenue and stability in B2C revenue. However, challenges in transitioning pharma partnerships and regulatory risks were noted. Overall, the positive financial metrics and strategic initiatives outweigh the risks, suggesting a positive stock price movement over the next two weeks.