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Core Position: DRIO
- 7/12/21 Announced three new employer contracts
- Presenting at Stifel 2021 Virtual Cross Sector Insight Conference on June 9th 8AM ET
- Research surfaced confirming the impact of digital therapeutic platform and live coaching on Diabetes
- Presenting at the 18th annual Craig-Hallum conference on June 2
- Erez (CEO) added to his position and was granted additional units, bumping his ownership near 1 million shares
- Announced the acquisition of PsyInnovations Inc, a behavioral health digital platform for $30 million
- Announced Q earnings after hours
- Cash and equivalents of $81.1 million at the end of Q1 2021
- Revenue of $3.6 million, would have been $4.7 million assuming the company acquired Upright Technologies in January. This revenue should begin to reflect in future quarters
- Enrollment exceeded 40%
- Total operating expenses of $15.4 million, EPS of (0.92 versus 1.57 the previous year)
- revenue growth of 73% over Q4 2020 and 116% over Q1 2020
- GAAP gross margin of 30.1% for the quarter excluding acquisition related costs, with product gross margin nearly doubling to 44.7% as compared to 24.2% in Q4 2020
- Received a $30 price target and outperform rating from Cowen
- Loaded more shares in the $16s on 4/20/21
- We have been building positions in the $16-18s and flipping them in the $20s, then repeating the play
- Read here for our updated research
- Released earnings on March 9th
- $28.5 million cash & equivalents as of December 31, 2020
- Revenue $7.58 million for the year
- Gross profit of $2.51 million for the 12 months ended December 31, 2020
- Added 90,000 users
- Released data from 998 users with type 2 diabetes which revealed increased digital engagement resulted in 43% improvement in blood glucose levels
- Announced acquisition of musculoskeletal company, potentially paving a path to billion + territory. The story continues to get better for those that can stomach the volatility in between in our opinion.
- Several mixed form 4s surfaced
- Bought the dip after DRIO announced that it inked a contract to provide its DTx solution to eligible employees of a U.S.-based Fortune 500 tech company
- For those of you unfamiliar with the Dario story, Dario Health (DRIO), the company markets its digital health platform through a SaaS (software as a service) model for the management of chronic conditions such as diabetes and hypertension. For an overview of DRIO’s value proposition click here for our original research. Updated research coming soon!
- Has had a continuous flow of positive material developments this year including a partnership agreement with Vitality Group, assembling an elite C-suite team, and expanding its service offering into the behavioral health and telemedicine market.
- This summer DRIO continued its momentum. In June they presented new clinical data at the American Diabetes Association’s (ADA) Scientific Sessions demonstrating that proper management of blood sugar and blood pressure through its platform translated to improved clinical outcomes.
- DRIO further commenced enrollment on two remote patient monitoring agreements (which include Medicare billing codes) providing a turn key solution for physicians amid the pandemic, appointed veteran healthcare plan executive Dennis Matheis to DRIO’s board of directors, and closed a $28.6M private placement with institutional and healthcare focused investors at $7.94/share
- Since the deal closed the market has reacted favorably propelling DRIO over 70%
- We anticipate further upside this year in DRIO driven by continued execution on its B2B2C (business to business to consumer) commercial strategy. Guidance given by Rick puts the annual revenue opportunity at $200M/year (vs. $1.7M in 2Q20)
- PT = $25+ (0-3 months)