DarioHealth Q3 revenue beats estimates on higher D2C sales
Overview
AI healthcare tech firm's Q3 revenue grew 6% yr/yr, beating analyst expectations
Q3 net loss and operating income missed analyst estimates
Company reduced operating expenses by 10% yr/yr, driven by lower R&D and admin costs
Outlook
Company expects revenue to accelerate at end of 2026 and into 2027
DarioHealth expects revenue contribution from New Jersey health plan to begin in 2027
Company sees increased engagement-based ARR from existing customers, supported by DarioIQ
Result Drivers
DIRECT-TO-CONSUMER SALES - Co said 6% yr/yr revenue growth was primarily driven by a 48% increase in direct-to-consumer sales
CHANNEL PARTNER GROWTH - Growth from channel partners partly offset declines in B2B and B2B2C revenue, which fell due to non-renewal of legacy contracts
OPERATING COST REDUCTIONS - Lower R&D and general and administrative expenses contributed to a 10% yr/yr decline in operating expenses; DarioIQ AI system cited as a factor
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $5.30 mln | $5.21 mln (4 Analysts) |
Q3 Net Loss | Miss | $8.80 mln | $6.57 mln (5 Analysts) |
Q3 Operating Income | Miss | -$8 mln | -$5.49 mln (5 Analysts) |
Q3 Gross Profit | $3.10 mln | ||
Q3 Operating Expenses | $11.20 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 $10.00, about 370.6% above its November 11 closing price of $2.13
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)