DarioHealth Corp (DRIO) 2022 Q4 法說會逐字稿

Greetings, and welcome to the DarioHealth Fourth Quarter 2022 Results Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Glenn Garmont. Please go ahead, sir.

您好，歡迎參加 DarioHealth 2022 年第四季度業績電話會議。 （操作員說明）提醒一下，正在錄製此會議。現在我很高興向您介紹主持人 Glenn Garmont。請繼續，先生。

Thank you, operator, and good morning, everybody. Thank you for joining us today for a discussion of DarioHealth's Fourth Quarter and Full Year 2022 Financial Results.

謝謝接線員，大家早上好。感謝您今天加入我們討論 DarioHealth 的第四季度和 2022 年全年財務業績。

Leading the call today will be Erez Raphael, Chief Executive Officer of DarioHealth. He'll be joined by Rick Anderson, President. After the prepared remarks, we'll open the call for Q&A. An audio recording and webcast replay for today's call will also be available online as detailed in the press release invite for this call. For the benefit of those who may be listening to the replay or archived webcast, this call is being held on March 9, 2023.

DarioHealth 的首席執行官 Erez Raphael 將主持今天的電話會議。總裁里克·安德森 (Rick Anderson) 將加入他的行列。在準備好的評論之後，我們將打開問答環節。今天電話會議的錄音和網絡廣播重播也將在網上提供，詳見本次電話會議的新聞稿邀請。為了那些可能正在收聽重播或存檔網絡廣播的人的利益，本次電話會議將於 2023 年 3 月 9 日舉行。

This morning, we issued a press release announcing our financial results for the fourth quarter and full year 2022. A copy of the release can be found on the Investor Relations page of DarioHealth's website.

今天上午，我們發布了一份新聞稿，宣布了我們 2022 年第四季度和全年的財務業績。可以在 DarioHealth 網站的投資者關係頁面上找到該新聞稿的副本。

Actual events or results may differ materially from those projected as a result of changing market trends, reduced demand or the competitive nature of DarioHealth's industry. Such forward-looking statements and their implications may involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from those projected.

由於市場趨勢變化、需求減少或 DarioHealth 行業的競爭性質，實際事件或結果可能與預測的事件或結果存在重大差異。此類前瞻性陳述及其影響可能涉及已知和未知的風險、不確定性和其他因素，這些因素可能導致實際結果或表現與預期結果或表現存在重大差異。

The forward-looking statements discussed on this call are subject to other risks and uncertainties, including those discussed in the Risk Factors section and elsewhere in the company's 2022 annual report on Form 10-K filed this morning. Additional information concerning factors that could cause results to differ materially from our forward-looking statements are described in greater detail in the company's press release issued this morning and in the company's other filings with the SEC.

在本次電話會議上討論的前瞻性陳述受到其他風險和不確定性的影響，包括風險因素部分和公司今天上午提交的 10-K 表格的 2022 年年度報告中其他地方討論的風險和不確定性。有關可能導致結果與我們的前瞻性陳述產生重大差異的因素的更多信息，在公司今天上午發布的新聞稿和公司提交給美國證券交易委員會的其他文件中有更詳細的描述。

In addition, certain non-GAAP financial measures may be discussed during this call. These non-GAAP measures are used by management to make strategic decisions, forecast future results and evaluate the company's current performance. Management believes the presentation of these non-GAAP financial measures is useful for investors' understanding and assessment of the company's ongoing core operations and prospects for the future. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is included in this morning's press release.

此外，本次電話會議可能會討論某些非 GAAP 財務措施。這些非 GAAP 指標被管理層用於製定戰略決策、預測未來結果和評估公司當前業績。管理層認為，這些非 GAAP 財務指標的列報有助於投資者了解和評估公司持續的核心業務和未來前景。今天上午的新聞稿中包含了這些非 GAAP 措施與最具可比性的 GAAP 措施的調節。

And with that, I'd like to introduce Erez Raphael, Chief Executive Officer of DarioHealth. Erez?

因此，我想介紹一下 DarioHealth 的首席執行官 Erez Raphael。埃雷茲？

Thank you, Glenn, and thanks to all of you for joining this morning's call. For the last 3 years, we have implemented a multiyear strategy, and when exploring our 2022 financial results and specifically the last 2 quarters of the year, it is hard not to see the success of our strategy as it's being reflected in our numbers. Before we deep dive into actual results, I would like to reemphasize our strategy. First, our multi-chronic condition strategy where we managed 5 different conditions on 1 integrated platform. This strategy is not only aligned but ahead of the macro digital health market trend of consolidation and consumer-centricity.

謝謝格倫，也感謝大家參加今天上午的電話會議。在過去的 3 年裡，我們實施了一項多年戰略，在探索我們 2022 年的財務業績，特別是今年最後兩個季度的財務業績時，很難不看到我們戰略的成功，因為它反映在我們的數字中。在我們深入研究實際結果之前，我想再次強調我們的戰略。首先，我們的多慢性病策略是在一個綜合平台上管理 5 種不同的病症。這一戰略不僅符合整合和以消費者為中心的宏觀數字健康市場趨勢，而且領先於此。

In fact, our current model is better suited to the financial macro environment we are facing today. The consolidation of conditions into one integrated platform enables less vendors and more conditions, especially in a market that looks to save money and be more efficient while better caring for its patients. Employers and buyers are looking for best of suite solutions backed by clinical evidence. Also our clinical outcomes data suggest that an integrated model is better than separated single point solution.

事實上，我們目前的模型更適合我們今天面臨的金融宏觀環境。將條件整合到一個集成平台中可以減少供應商和更多條件，特別是在一個希望節省資金和提高效率同時更好地照顧患者的市場中。雇主和買家正在尋找有臨床證據支持的最佳套件解決方案。此外，我們的臨床結果數據表明，集成模型優於分離的單點解決方案。

Second is our transformation from direct-to-consumer to B2B. This change has resulted in a significant improvement in the financial profile of the company because of the significant reduction in the cost per acquisition, the ability to scale and more efficient economic model per member that is getting on the platform.

其次是我們從直接面向消費者到 B2B 的轉變。這一變化顯著改善了公司的財務狀況，因為每次收購成本顯著降低，擴展能力和平台上每位成員的經濟模式更高效。

Overall, our multiple -- multidimensional strategy of multiple conditions, and moving to B2B model increases revenue stability while establishing a dependency that is difficult to break. In other words, it will take several vendors to replace our integrated solution. And overall impact is more runway to execute on our strategic plan with a significant reduction in the financial risk profile of the company.

總的來說，我們的多重——多維策略和轉向 B2B 模型增加了收入穩定性，同時建立了難以打破的依賴關係。換句話說，需要幾家供應商來替代我們的集成解決方案。整體影響是執行我們的戰略計劃的更多跑道，同時顯著降低公司的財務風險狀況。

Let's take a deep dive into the financial results. Q4 shows continuation in the improvement of the financial profile of the company and continues the trend we demonstrated in Q3, representing a real evidence that shows that our model is working and creating a long-term shareholder value.

讓我們深入了解財務結果。第 4 季度顯示公司財務狀況持續改善，並延續了我們在第 3 季度展示的趨勢，這是一個真實的證據，表明我們的模式正在發揮作用並創造了長期股東價值。

Let's start by looking into the revenues and its components. Full year of 2022 revenues is $27.6 million, increased 34.8% over $20.5 million in 2021 as the pivot to B2B model more than offset managed wind-down of B2C. More interestingly, full year 2022 B2B revenues is greater than 59% of the total revenue versus just 4% for the full year of 2021. Overall, B2B growth year-over-year is 1,800%.

讓我們從研究收入及其組成部分開始。 2022 年全年收入為 2760 萬美元，比 2021 年的 2050 萬美元增長 34.8%，因為轉向 B2B 模式不僅抵消了 B2C 的管理結束。更有趣的是，2022 年全年 B2B 收入佔總收入的 59% 以上，而 2021 年全年僅為 4%。總體而言，B2B 同比增長 1,800%。

Another important metric is gross margin. This is where results are even more exciting as we are showing a true software-driven business with a SaaS, Software as a Service-oriented characteristic. Pro forma gross profit was 58.1% of revenues for the fourth quarter of 2022, up significantly from 22% of revenues for the fourth quarter of 2021. As mentioned in the last few calls, we are targeting an average of 60% gross margins for 2023 to reach our goal of 70% gross margins by 2024.

另一個重要指標是毛利率。這是結果更加令人興奮的地方，因為我們展示了一個真正的軟件驅動業務，具有 SaaS、軟件即面向服務的特徵。預計毛利潤佔 2022 年第四季度收入的 58.1%，大大高於 2021 年第四季度佔收入的 22%。正如在最近幾次電話會議中提到的，我們的目標是 2023 年平均毛利率為 60%到 2024 年實現我們 70% 毛利率的目標。

Looking at the operating loss, we are seeing true operating leverage of the infrastructure that we have built and real economic advantage for multiproduct [line] approach. We demonstrated [58.4%] reduction in operating loss in the fourth quarter of 2022 compared to the fourth quarter of 2021. It is also a 38.2% reduction in operating loss compared to the third quarter of 2022.

從運營損失來看，我們看到了我們已經建立的基礎設施的真正運營槓桿和多產品 [線] 方法的實際經濟優勢。我們證明，與 2021 年第四季度相比，2022 年第四季度的運營虧損減少了 [58.4%]。與 2022 年第三季度相比，運營虧損也減少了 38.2%。

Notably, operating loss in the fourth quarter on a non-GAAP basis declined by more than 60% to only $6 million compared to $15 million in the fourth quarter of 2021. The underlying reasons for this economic advantage of multi-condition is the improvement of the following key parameters. We have more eligible population per every account that we are signing on. We have higher ARPU, average revenue per user. And overall, we can generate between 4 to 8x more dollar per every account compared to a single condition platform.

值得注意的是，與 2021 年第四季度的 1500 萬美元相比，第四季度非 GAAP 營業虧損下降了 60% 以上，僅為 600 萬美元。多條件經濟優勢的根本原因是改善了以下關鍵參數。我們簽署的每個帳戶都有更多符合條件的人口。我們有更高的 ARPU，即每個用戶的平均收入。總的來說，與單一條件平台相比，我們每個賬戶的收入可以多出 4 到 8 倍。

Looking into our balance sheet. We ended the fourth quarter in a strong financial position with cash and equivalents of $49.3 million. We also continue to improve our financial profile of the company. Losses are declining, and we believe that this momentum will continue into 2023, which is something that will extend our overall run rate.

查看我們的資產負債表。第四季度末，我們的現金和等價物為 4930 萬美元，財務狀況良好。我們還繼續改善公司的財務狀況。虧損正在下降，我們相信這種勢頭將持續到 2023 年，這將延長我們的整體運行率。

Before handing over the call to Rick, a few highlights on the commercial side. We achieved our goal of 100 accounts by the end of 2022. We believe that we are positioned to accelerate growth in 2023 and 2024 as the overall foundation for client wins is improving with larger sales team and meaningful partnerships that should give us a significant larger access to clients.

在將電話轉給 Rick 之前，先談談商業方面的一些亮點。到 2022 年底，我們實現了 100 個客戶的目標。我們相信，我們有能力在 2023 年和 2024 年加速增長，因為贏得客戶的整體基礎正在改善，更大的銷售團隊和有意義的合作夥伴關係應該會給我們帶來更大的機會給客戶。

In fact, we effectively multiplied our commercial capacity by multiple [points]. We have made and continue to make substantial progress in building our relationship with Sanofi, which we believe can take us to the next level in terms of this relationship.

事實上，我們有效地將我們的商業能力乘以多個[點]。我們在建立與賽諾菲的關係方面已經並將繼續取得實質性進展，我們相信這可以將我們的關係提升到一個新的水平。

Our relationship with Aetna is progressing, and we recognized revenue this quarter and anticipate accelerating revenues throughout 2023 and beyond. Additionally, we are working on another, at least one strategic partnership that will help us expand our commercial outlook.

我們與 Aetna 的關係正在取得進展，我們確認了本季度的收入，並預計在整個 2023 年及以後收入將加速增長。此外，我們正在致力於另一種，至少是一種戰略合作夥伴關係，這將幫助我們擴大我們的商業前景。

With that, I want to hand over the call to Rick to elaborate on the commercial side.

有了這個，我想把電話交給里克來詳細說明商業方面的問題。

Thanks, Erez. In the fourth quarter, we continued our revenue growth trend with increasing year-over-year and sequential quarterly growth. During the fourth quarter, we continued to manage down our B2C revenue to reduce our cost of customer acquisition, improve our gross margin and reduce our overall burn while maintaining the strategic advantages of our B2C business. We expect to maintain the B2C businesses at the current level throughout 2023.

謝謝，埃雷茲。在第四季度，我們繼續保持收入增長趨勢，同比增長和連續季度增長。第四季度，我們繼續降低 B2C 收入，以降低客戶獲取成本、提高毛利率並減少整體消耗，同時保持 B2C 業務的戰略優勢。我們預計在整個 2023 年將 B2C 業務維持在當前水平。

On the other hand, we saw strong growth in our B2B revenue in 2022 with 1,800% year-over-year growth, which more than offset the 42% decrease in B2C revenue. And the fourth quarter B2B revenue accounted for 70% of total revenue. This validates our strategic move to focus on the B2B market based on the explosive growth we have already seen in B2B revenues.

另一方面，我們看到 2022 年 B2B 收入強勁增長，同比增長 1,800%，抵消了 B2C 收入 42% 的下降。而第四季度B2B收入佔總收入的70%。基於我們已經看到的 B2B 收入的爆炸性增長，這證實了我們專注於 B2B 市場的戰略舉措。

We increased our B2B contracts in the fourth quarter to achieve our target of 100 B2B contracts in 2022, which represents 100% year-over-year growth. In addition, we have additional contracts that were not signed until after year-end that are expected to launch in the first quarter. Including these additional contracts, our signed contract value is approximately $65 million at year-end.

我們在第四季度增加了 B2B 合同，以實現 2022 年 100 個 B2B 合同的目標，同比增長 100%。此外，我們還有一些直到年底才簽署的合同，預計將在第一季度推出。包括這些額外的合同，我們在年底簽署的合同價值約為 6500 萬美元。

As Erez noted earlier, the majority of these new contracts are multi-condition, which generate more revenue per customer than single condition contracts. As we are seeing strong demand in the market for vendors that can provide several conditions, which reduces the cost and work of integrating and operating several vendors in this environment, Dario's platform is unique.

正如 Erez 之前指出的那樣，這些新合同中的大部分都是多條件合同，與單一條件合同相比，它為每位客戶帶來更多收入。由於我們看到市場對能夠提供多種條件的供應商的強烈需求，這減少了在這種環境中集成和運營多個供應商的成本和工作，Dario 的平台是獨一無二的。

Our platform covers more chronic conditions than almost all our competitors, and it covers those conditions in 1 integrated platform. It provides 1 journey, 1 experience and 1 coach for a multitude of conditions.

我們的平台涵蓋的慢性病比幾乎所有競爭對手都多，而且它在 1 個集成平台中涵蓋了這些病症。它針對多種情況提供 1 次旅程、1 次體驗和 1 次教練。

Alongside of our B2C roots of our solution, we believe this yields better member engagement, which drives better clinical and financial outcomes. In fact, one of our recent studies demonstrated that people who manage both, diabetes and hypertension, on the Dario platform had better clinical outcomes than those that manage diabetes alone. This adds to the growing body of clinical studies that supports the outcomes of the Dario platform overall and in multiple demographics, including members over 65. This is a demographic that has a higher prevalence of chronic conditions and we believe is attractive to Medicare Advantage health plans.

除了我們解決方案的 B2C 根源外，我們相信這會產生更好的會員參與度，從而推動更好的臨床和財務結果。事實上，我們最近的一項研究表明，在 Dario 平台上同時管理糖尿病和高血壓的人比單獨管理糖尿病的人有更好的臨床結果。這增加了越來越多的臨床研究，這些研究支持 Dario 平台的整體結果和多個人口統計數據，包括 65 歲以上的成員。這是一個慢性病患病率較高的人口統計數據，我們認為對 Medicare Advantage 健康計劃具有吸引力.

In addition to customers seeking more conditions from less vendors, they also are looking to add new vendors and benefits through their existing partners. As such, distribution and strategic partners will be a pillar of our commercial strategy in 2023.

客戶除了從更少的供應商那裡尋求更多的條件，他們還希望通過現有合作夥伴增加新的供應商和利益。因此，分銷和戰略合作夥伴將成為我們 2023 年商業戰略的支柱。

We will continue to invest resources in the partnerships through which we have already acquired customers like Virgin Pulse, the largest wellness vendor in the country; Solera, which has multiple health plan customers; Vitality; and Alliant. Given the dozens of companies that these partnerships give us access to, we believe we'll be able to accelerate revenue in a cost-efficient manner.

我們將繼續在合作夥伴關係中投入資源，我們已經通過這些合作夥伴關係獲得了客戶，例如該國最大的健康供應商 Virgin Pulse； Solera，擁有多個健康計劃客戶；活力;和阿聯。鑑於這些合作夥伴關係使我們能夠接觸到數十家公司，我們相信我們將能夠以具有成本效益的方式加速收入增長。

In 2023, we will seek to expand our partnerships to a small number of important partners that we believe will expand our reach and accelerate our revenues. We added 3 health plans in 2022, one being Aetna. As we have previously discussed, we have been anticipating 2 additional risk-bearing/health plans through 2 of our strategic partners. While these have been delayed past year-end, we continue to expect them in the relatively near term with both expected to generate significant revenue in 2023. One is already integrated and ready for launch, and the other is in final contracting.

2023 年，我們將尋求將我們的合作夥伴關係擴大到少數重要合作夥伴，我們相信這些合作夥伴將擴大我們的業務範圍並加快我們的收入增長。我們在 2022 年增加了 3 項健康計劃，其中一項是 Aetna。正如我們之前所討論的，我們一直在期待通過我們的 2 個戰略合作夥伴提供 2 個額外的風險承擔/健康計劃。雖然這些已被推遲到年底，但我們繼續預計它們會在相對較短的時間內實現，預計兩者都將在 2023 年產生可觀的收入。一個已經整合併準備啟動，另一個正在簽訂最終合同。

As we previously discussed, Aetna is integrating our technology into their new behavioral health platforms. We recognize revenue in the second half of 2022 related to delivering the new platform to Aetna and anticipate accelerating revenue throughout 2023 as Aetna brings on more members to the platform. As we are paid for members that have access to the platform, we expect that this will contribute to growing revenue in 2023 and beyond.

正如我們之前所討論的，Aetna 正在將我們的技術整合到他們新的行為健康平台中。我們確認 2022 年下半年與向 Aetna 交付新平台相關的收入，並預計隨著 Aetna 為該平台帶來更多成員，整個 2023 年收入將加速增長。由於我們為有權訪問該平台的會員付費，我們預計這將有助於 2023 年及以後的收入增長。

Just over a year ago, we entered into a 5-year, $30 million strategic agreement with Sanofi, which we expect to make significant contribution to revenue again in 2023. The agreement has 3 main parts: co-promotion the Dario solution through their market access team, development of Sanofi-directed ideas on the Dario platform, and data in studies.

就在一年多前，我們與賽諾菲達成了一項為期 5 年、價值 3000 萬美元的戰略協議，我們預計該協議將在 2023 年再次為收入做出重大貢獻。該協議包括 3 個主要部分：通過他們的市場共同推廣 Dario 解決方案訪問團隊，在 Dario 平台上開發賽諾菲指導的想法，以及研究數據。

The co-promotion immediately added 5x the sales resources, selling to health plans and at-risk entities and substantial additional marketing dollars being deployed to promote our solution. Our co-marketing efforts have played out in other partnerships as well, including our recent agreement with Dexcom.

聯合促銷立即增加了 5 倍的銷售資源，銷售給健康計劃和有風險的實體，並部署了大量額外的營銷資金來推廣我們的解決方案。我們的聯合營銷努力也在其他合作夥伴關係中發揮了作用，包括我們最近與 Dexcom 達成的協議。

We completed the first year of development milestones, and we are well into year-2 milestones. And we are progressing on what are expected to be some of the most robust studies in the industry. Studies of this quality should add considerable additional support for customers adopting the Dario solutions.

我們完成了第一年的發展里程碑，我們即將進入第二年的里程碑。我們正在推進一些有望成為業內最有力的研究。這種質量的研究應該為採用 Dario 解決方案的客戶增加相當多的額外支持。

We recently announced new relationship with Dexcom, a leader in the continuous glucose monitoring or CGM industry, which will enable us to fully integrate their CGM device into the Dario platform. We expect that this will expand the services we can provide CGM users, increase the data available on our platform to inform our member personalization and ultimately, to make our offering more valuable to payers and employers.

我們最近宣布與連續血糖監測或 CGM 行業的領導者 Dexcom 建立新的合作關係，這將使我們能夠將他們的 CGM 設備完全集成到 Dario 平台中。我們希望這將擴大我們可以為 CGM 用戶提供的服務，增加我們平台上可用的數據，以告知我們的會員個性化，並最終使我們的產品對付款人和雇主更有價值。

In addition, this will enable our user-centric platform to enable value-based care for CGM at the patient level. Clinical and cost improvement data will be obtainable. We also believe that this can enable new opportunities to provide better care and innovative offerings with our partner, Sanofi.

此外，這將使我們以用戶為中心的平台能夠在患者層面為 CGM 提供基於價值的護理。將可以獲得臨床和成本改進數據。我們還相信，這可以帶來新的機會，與我們的合作夥伴賽諾菲一起提供更好的護理和創新產品。

Overall, we believe we are well positioned as we move into 2023 for our significant growth trajectory as we have demonstrated that we can convert contracts into revenue by expanding the number of contracts that are multi-condition, achieving average enrollment rates of 30% or better, and average engagement between 70% and 80%. Over the last year, we have more than doubled the number of reference accounts, which, based on experience, is the basis to accelerate growth of customers on the platform.

總體而言，我們相信我們在進入 2023 年時處於有利地位，因為我們已經證明我們可以通過擴大多條件合同的數量將合同轉化為收入，實現 30% 或更高的平均入學率，平均參與度在 70% 到 80% 之間。在過去的一年裡，我們的參考賬戶數量增加了一倍多，根據經驗，這是加速平台客戶增長的基礎。

Another immediate result of customer satisfaction is we are already seeing multiple customers who have seen initial results evaluate expanding conditions or populations on our platform. To leverage the proven business model and sales momentum we have seen, we have recently more than doubled our direct sales team and believe that we can expand our contract value in 2023 by tens of millions of dollars across self-insured employers and health plans with a focus on increasing the average deal side through larger customers and continuing to increase the portion of our contracts that are multi-condition past the 50% currently in our pipeline.

客戶滿意度的另一個直接結果是，我們已經看到多個看到初步結果的客戶評估了我們平台上不斷擴大的條件或人口。為了利用我們所看到的行之有效的商業模式和銷售勢頭，我們最近將我們的直銷團隊擴大了一倍多，並相信我們可以在 2023 年將我們的合同價值擴大數千萬美元，涉及自保雇主和健康計劃專注於通過更大的客戶增加平均交易方，並繼續增加我們的多條件合同部分，超過目前我們管道中的 50%。

In addition, we believe that we can double the number of strategic partners and more than double large customers. I would also like to take a moment to address a question we frequently are asked lately. To date, we have not seen any significant decrease in demand due to macroeconomic factors. In fact, surveys that have been recently conducted show that many companies continue to express a desire to expand and change their digital health benefits. And as we focus on costly chronic conditions with a definitive ROI, companies can reduce their expenditures by implementing our solutions.

此外，我們相信我們可以將戰略合作夥伴的數量增加一倍，將大客戶數量增加一倍以上。我還想花點時間回答一個我們最近經常被問到的問題。迄今為止，我們還沒有看到由於宏觀經濟因素導致需求出現任何顯著下降。事實上，最近進行的調查表明，許多公司繼續表示希望擴大和改變他們的數字健康福利。由於我們專注於具有明確投資回報率的昂貴慢性病，公司可以通過實施我們的解決方案來減少支出。

In summary, we believe we will continue to see strong growth in both, the number of customers and contract value, in 2023 through our direct sales efforts and through our partners.

總之，我們相信，到 2023 年，通過我們的直接銷售努力和我們的合作夥伴，我們將繼續看到客戶數量和合同價值的強勁增長。

With that, I would like to turn it back over to Erez.

有了這個，我想把它轉回埃雷茲。

Thank you, Rick. So to summarize the call, first, despite the macroeconomic factor and the possibility of recession, we don't see a slowdown in the digital health market. In fact, we continue to see a tailwind as payers and employers seek to better manage their patients and reduce health care costs.

謝謝你，里克。因此，總結一下這個呼籲，首先，儘管存在宏觀經濟因素和經濟衰退的可能性，但我們認為數字醫療市場不會放緩。事實上，隨著付款人和雇主尋求更好地管理患者並降低醫療保健成本，我們繼續看到順風。

We believe that in this environment, employers are trying to find ways to save money and create efficiencies and will look in to leverage multi-condition platform that offers a better health profile and will see Dario as the most competitive solution. This will help us continue to win more clients and achieve significant market share.

我們相信，在這種環境下，雇主正在努力尋找節省資金和提高效率的方法，並將考慮利用提供更好健康狀況的多條件平台，並將 Dario 視為最具競爭力的解決方案。這將幫助我們繼續贏得更多客戶並獲得可觀的市場份額。

Further, our commercial capabilities grew considerably in the past year with a larger sales team and more strategic partnerships, which we expect to accelerate not just more contract wins but more meaningful contract wins such as the Aetna and other large accounts. We are seeing a trend of big traditional health care players in large pharma such as Sanofi and big medical devices companies looking to tap into the digital health space by partnering with companies like Dario. So they, too, can play a role in health care transformation.

此外，我們的商業能力在過去一年中有了顯著增長，擁有更大的銷售團隊和更多的戰略合作夥伴關係，我們預計這不僅會加速贏得更多合同，而且會加速贏得更有意義的合同，例如 Aetna 和其他大客戶。我們看到，賽諾菲等大型傳統醫療保健公司和大型醫療設備公司希望通過與 Dario 等公司合作，進入數字健康領域。因此，它們也可以在醫療保健轉型中發揮作用。

We expect to make more larger and strategic partnerships in 2023. We believe that by having each of these building blocks in place, we are in a position to build a truly differentiated digital health company with the potential to reach profitability with $60 million to $80 million in revenue. We anticipate accelerating growth in 2023, 2024 that should increase shareholder value.

我們希望在 2023 年建立更多更大的戰略合作夥伴關係。我們相信，通過將這些構建塊中的每一個構建到位，我們能夠建立一個真正差異化的數字健康公司，並有可能實現 6000 萬至 8000 萬美元的盈利在收入中。我們預計 2023 年和 2024 年將加速增長，這將增加股東價值。

Thank you all. And now I want to hand over the call to a Q&A session.

謝謝你們。現在我想把電話轉給問答環節。

(Operator Instructions) Our first question comes from Charles Rhyee with TD Cowen.

（操作員說明）我們的第一個問題來自 TD Cowen 的 Charles Rhyee。

Congrats on the quarter. Hey, Erez, I want to talk about ending the year strong. And on top of that, we're now expecting -- onboarding Aetna at some point this year. But we also doubled the number of accounts from 50 to 100. I think -- I assume a lot of those have January starts. So maybe you can talk about sort of how the 1/1 starts have progressed so far. And would that suggest that we should still see sequential improvement in revenue in the first quarter over the fourth quarter? And then as we move and then potentially another step-up as we -- as the Aetna contract starts to ramp up as well?

祝賀這個季度。嘿，埃雷茲，我想談談如何以強勁的勢頭結束這一年。最重要的是，我們現在期待 - 今年某個時候加入 Aetna。但我們也將賬戶數量從 50 個增加了一倍到 100 個。我認為 - 我假設其中很多都是從一月份開始的。所以也許你可以談談到目前為止 1/1 啟動的進展情況。這是否表明我們仍應看到第一季度的收入比第四季度有所改善？然後隨著我們的行動，然後可能又一次升級——因為 Aetna 合同也開始增加？

Yes. Thanks for the question, Charles. So I think that we need to look into the revenues in 3 portions. One is the B2C that was kind of slowing down and is getting stabilized in Q4 and into next year, we think we're going to see more of the same rates.

是的。謝謝你的問題，查爾斯。所以我認為我們需要分 3 個部分來研究收入。一個是 B2C，它有點放緩，並在第四季度和明年趨於穩定，我們認為我們會看到更多相同的利率。

The other part is revenue that we are getting from strategic partners like Sanofi and also Aetna, because Aetna have a few portions. We have the development services, and we have also per user per month at some point this year. That's another portion.

另一部分是我們從賽諾菲和 Aetna 等戰略合作夥伴那裡獲得的收入，因為 Aetna 有一些部分。我們有開發服務，而且我們在今年的某個時候每個月也有每個用戶。那是另一部分。

And the third portion is the accounts and the [pure] revenue that is coming from users that are on the platform. When it comes to the second one, as we stated in previous calls, there are some revenues that are being delivered according to milestones.

第三部分是來自平台上用戶的賬戶和[純]收入。至於第二個，正如我們在之前的電話會議中所說，有一些收入是根據里程碑交付的。

So for Sanofi, for example, we have the data milestone. We have development milestones. So it's hard to look into this revenue as something that is growing sequentially quarter-over-quarter. However, on a yearly basis, this is something that is repeating every year.

例如，對於賽諾菲，我們有數據里程碑。我們有發展里程碑。因此，很難將這一收入視為環比增長的收入。然而，以年為單位，這是每年都在重複的事情。

We do have multiple launches in Q1. And this is why we should expect growth that will go from Q4 of 2022 into Q1 of 2023. And moving forward, we're going to see more and more significant growth as we are getting to high volumes from big accounts, for example, Aetna and other accounts that we expect to launch later this year.

我們在第一季度確實有多次發布。這就是為什麼我們應該預期從 2022 年第四季度到 2023 年第一季度的增長。展望未來，隨著我們從大客戶那裡獲得高銷量，例如 Aetna，我們將看到越來越顯著的增長以及我們預計在今年晚些時候推出的其他帳戶。

Okay. So then if we think about the strategic partnership bucket sort of that is tied to milestone payments, can you remind us in the fourth quarter in the B2B revenue, how much was related to those kind of deliverables?

好的。那麼，如果我們考慮與里程碑付款相關的戰略合作夥伴關係，您能否在第四季度的 B2B 收入中提醒我們，有多少與此類可交付成果相關？

Yes. So overall, out of $6.8 million, we had like 59% that is the combination of strategic and pure ARR. Around 60% of that -- 60% or 65% of that is coming from the strategic accounts.

是的。所以總的來說，在 680 萬美元中，我們有 59% 是戰略和純 ARR 的結合。其中大約 60%——其中 60% 或 65% 來自戰略客戶。

Okay. So if we think of it that way, is it -- do you have any visibility here, now we're already in March, whether we've kind of -- we have hit some milestones to recognize some additional of those payments? Or is this -- are those -- do those tend to come sort of at the end of the quarter?

好的。因此，如果我們這樣想，是不是 - 你在這裡有任何可見性，現在我們已經在 3 月了，我們是否已經達到了一些里程碑以確認這些付款中的一些？或者這是 - 那些 - 那些往往會在本季度末出現嗎？

Yes. We do -- we will recognize more milestones that are coming from strategic accounts such as Sanofi and Aetna in Q1. Definitely, yes. We know that it's happening. And we're going to see also increase on the pure B2B ARR that is coming from accounts that we are enrolling to the platform. So the answer is yes, we're going to see both revenues in Q1.

是的。我們這樣做——我們將在第一季度認識到更多來自賽諾菲和 Aetna 等戰略客戶的里程碑。當然，是的。我們知道它正在發生。我們還將看到來自我們註冊到平台的帳戶的純 B2B ARR 的增加。所以答案是肯定的，我們將在第一季度看到這兩項收入。

And then in terms of the ARR portion of it, the 40%, is this one of those things where you have a 1/1 start, but you still have to wait for members to opt in and get started, so it takes a little bit of while to start to recognize revenue? Or so -- I guess in other words, while it's going to be sequentially up, is that the piece that we should -- that's probably going to grow a little bit -- take a little bit longer to start ramping up, and we'll see more of it maybe in the second quarter?

然後就它的 ARR 部分而言，40%，這是你有 1/1 開始的事情之一，但你仍然需要等待成員選擇加入並開始，所以需要一點時間需要一段時間才能開始確認收入？左右 - 我想換句話說，雖然它會按順序增加，但我們應該 - 這可能會增長一點 - 需要更長的時間才能開始增加，而且我們'也許在第二季度會看到更多？

Yes, you're correct. So usually, as we stated before and the time that it takes for an account to reach to its goal is somewhere between 10 weeks to 15 weeks from the start time. So a lot of the accounts are not starting exactly 1/1. Sometimes it's waiting for the second month of the first quarter. So overall, you're going to see the ARR definitely going between Q4 to Q1. And in the last 5 quarters, we have seen they are growing quarter-over-quarter sequentially in a very consistent way.

是的，你是對的。所以通常，正如我們之前所說，一個帳戶達到其目標所需的時間是從開始時間開始的 10 周到 15 週之間。所以很多賬戶並不是從 1/1 開始的。有時要等到第一季度的第二個月。所以總的來說，你會看到 ARR 肯定會在第四季度到第一季度之間。在過去的 5 個季度中，我們看到它們以非常一致的方式環比增長。

But if you are looking on this spike in terms of the growth, it's going to continue into Q2 and then Q3 based on the accounts that we are signing up. But we -- it's not like everything is up on 1/1, and then you see a big spike at the beginning of the year. As I said, it's like 10 to 15 weeks to get to the run rate of an account.

但是，如果你從增長的角度來看這種飆升，它會持續到第二季度，然後是第三季度，這取決於我們註冊的賬戶。但是我們——並不是所有的事情都在 1/1 上，然後你會在年初看到一個大的峰值。正如我所說，大約需要 10 到 15 週的時間才能達到帳戶的運行速度。

(inaudible)

（聽不清）

Yes, and not including the huge one, which is Aetna, which is a different story. And this is something that we expect to grow as we move forward along the year.

是的，不包括巨大的 Aetna，這是一個不同的故事。這是我們希望隨著這一年的發展而增長的東西。

And for Aetna, I think the start date, you've kind of talked about as sort of midyear. Should we would then expect because it's being paid on a PMPM basis for members that it's made available to -- should we assume kind of then a meaningful step-up in the third quarter? Or is this also one where -- yes, it would seem like that's the way the contract works. Just wanted to clarify that.

對於 Aetna，我認為開始日期，你已經談到了某種年中。那麼我們是否應該期待，因為它是在 PMPM 的基礎上為它提供給的成員支付的——我們是否應該假設在第三季度有一種有意義的提升？或者這也是——是的，這似乎是合同的運作方式。只是想澄清一下。

Yes. Yes. I think that we should expect a significant step up. And not only due to that account, we have another few accounts of health plans that we believe that are going to launch also this quarter and gradually are going to grow. But to your point, Aetna, specifically, we're going to see a significant step up in Q3.

是的。是的。我認為我們應該期待一個顯著的進步。不僅因為這個賬戶，我們還有另外幾個健康計劃賬戶，我們相信這些賬戶也將在本季度推出並逐漸增長。但就你的觀點而言，Aetna，具體來說，我們將在第三季度看到一個重要的進步。

But it doesn't mean that we are not generating revenue from Aetna. As we stated before, because we are part of the platform of Aetna and because there are elements that related to customization and integration, Aetna already vested into this relationship. And Aetna spend a lot of money, a lot of dollars into the integration and the localization of the platform. And this is something that we recognized in Q4, and we believe that we are recognizing also in Q1 and 2 of 2023. So overall, this is something that gives us the confidence that the company is going to grow in these quarters as well.

但這並不意味著我們沒有從 Aetna 獲得收入。正如我們之前所說，因為我們是 Aetna 平台的一部分，並且因為存在與定制和集成相關的元素，所以 Aetna 已經歸屬於這種關係。 Aetna 在平台的集成和本地化方面投入了大量資金和資金。這是我們在第四季度認識到的事情，我們相信我們也在 2023 年第一季度和第二季度認識到這一點。總的來說，這讓我們有信心公司也將在這些季度實現增長。

Our next question comes from Alex Nowak with Craig-Hallum Capital Group.

我們的下一個問題來自 Craig-Hallum Capital Group 的 Alex Nowak。

First, just on the DTC side, there's $2 million of DTC revenue in this quarter, does that take another step down in Q1, or is that going to basically normalize at this level?

首先，就 DTC 方面而言，本季度 DTC 收入為 200 萬美元，這是否會在第一季度進一步下降，還是會在這個水平上基本正常化？

We believe that we're going to normalize it in this level. For us, and I think that this is very important to note, B2C is part of our R&D. We need data. Data is what is educating our software, and we want to keep it in a most efficient way. In these levels, we are not losing money on the P&L of the B2C. And more or less, we're going to stay in this level into next year -- into this year.

我們相信我們將在這個級別將其正常化。對於我們來說，我認為這一點非常重要，B2C 是我們研發的一部分。我們需要數據。數據是教育我們軟件的東西，我們希望以最有效的方式保存它。在這些層面上，我們並沒有在 B2C 的損益表上賠錢。或多或少，我們將保持這個水平到明年 - 到今年。

Okay. That makes sense. So I mean, continue the last set of questions with regard to how to think about 2023. You got the DTC piece that's normalizing here. Although it has taken a step down throughout 2022, but it's going to be normalized for 2023.

好的。這就說得通了。所以我的意思是，繼續關於如何思考 2023 年的最後一組問題。你得到了正在正常化的 DTC 部分。雖然它在整個 2022 年有所下降，但它會在 2023 年正常化。

You've got a number of existing deals that are ramping, whether it be Aetna, Sanofi, you're having milestone payments come in, potentially some new health plans plus the rest of the, call it, the 100 contracts that you have under -- are already signed. So I mean, when you end 2023, Erez, when we're doing this call a year from now and talking about 2023, where do we want the growth rate to be? If we come up with 30% growth, are we happy? Are we disappointed? Help us out here.

你有許多現有的交易正在增加，無論是安泰、賽諾菲，你都有里程碑式的付款，可能有一些新的健康計劃加上其餘的，稱之為你擁有的 100 份合同——已經簽約。所以我的意思是，當你在 2023 年結束時，埃雷茲，當我們在一年後進行這個電話會議並談論 2023 年時，我們希望增長率在哪裡？如果我們想出 30% 的增長，我們會高興嗎？我們失望了嗎？在這裡幫助我們。

Yes. So overall, I think that the way to look at it is in terms of the accounts that we have signed on, and Rick in presentation, he disclosed that we have like total accounts signed of $65 million. We were happy with the number of accounts that we have signed on.

是的。所以總的來說，我認為看待它的方式是根據我們已經簽署的賬戶，里克在演講中透露，我們簽署的賬戶總額為 6500 萬美元。我們對已簽署的帳戶數量感到滿意。

The way that we are designing the business is that eventually, we want to grow in a significant way in the ranges of like 70% over the next 2 years. This is more or less what we see. And this is with some kind of a margin of safety, because if you're looking into the growth of the accounts, we were growing by 100%.

我們設計業務的方式是，最終，我們希望在未來 2 年內實現 70% 左右的顯著增長。這或多或少是我們所看到的。這是有一定安全邊際的，因為如果你研究賬戶的增長，我們會增長 100%。

We're growing the ARR from $35 million at the beginning of the year to $65 million as of today. So overall, if we are taking some kind of margin of safety, which we believe we should take in terms of implementation and delays, overall, over the next 2 years, we are looking into 70%-plus growth for the full business and looking into the end of 2024.

我們將 ARR 從年初的 3500 萬美元增加到今天的 6500 萬美元。所以總的來說，如果我們採取某種安全邊際，我們認為我們應該在實施和延遲方面採取這種措施，總的來說，在未來 2 年內，我們正在考慮整個業務的 70% 以上的增長，並期待到2024年底。

Okay. Makes sense. That helps us get some guideposts here. Maybe just around the OpEx side. Obviously, OpEx came down pretty significantly this quarter in Q4. Maybe talk about kind of the puts and takes there. What drove the OpEx down? What's going to be maybe a onetime reduction in Q4? Will we maybe see step-ups in 2023? And where is the OpEx coming out of? Any pieces of the business that would be hurt from this?

好的。說得通。這有助於我們在這裡找到一些路標。也許就在 OpEx 方面。顯然，本季度第四季度的運營支出大幅下降。也許談論那種 puts and takes 那裡。是什麼導致運營支出下降？第四季度可能會一次性減少什麼？我們可能會在 2023 年看到升級嗎？ OpEx 從哪裡來？任何業務都會因此受到傷害？

Yes. So thanks for this question. I think that this is where the company made the significant progress in the last year. And this is something that needs to be taken in the context of the whole digital health market.

是的。所以感謝這個問題。我認為這是公司去年取得重大進展的地方。這是在整個數字健康市場的背景下需要考慮的事情。

So what we see in the whole digital health market, and we have -- the majority of the companies are still private. And we see companies that are generating, I don't know, $30 million in revenue, $50 million.

因此，我們在整個數字健康市場中看到的，我們已經看到——大多數公司仍然是私有的。我們看到公司正在產生，我不知道，3000 萬美元，5000 萬美元的收入。

We've seen in the public market a company that was acquired that was generated $400 million in revenue. What we have seen consistently is that companies were losing a lot of money. And when we were thinking about the Dario business, we are trying to put the foundation to get to cash flow positive, somewhere between $60 million to $80 million in revenue.

我們在公開市場上看到一家被收購的公司產生了 4 億美元的收入。我們一直看到的是，公司正在虧損很多。當我們考慮 Dario 業務時，我們正在努力為實現正現金流奠定基礎，收入在 6000 萬至 8000 萬美元之間。

In order to do so, we need not just to have all the building blocks of offering which is the multi-condition that gives us 6x on every account in terms of revenue generation, it's also about how we build the infrastructure of the OpEx of the company. Today, Dario has 250 employees that are in between India, Israel and the States. The major -- all the commercial team, regulation and everything is running from the U.S., but the rest is running out of the U.S.

為了做到這一點，我們不僅需要擁有產品的所有構建塊，即在創收方面為我們每個賬戶提供 6 倍的多重條件，還涉及我們如何構建 OpEx 的基礎設施公司。如今，Dario 在印度、以色列和美國之間擁有 250 名員工。主要的——所有的商業團隊、監管和一切都在美國運行，但其餘的都在美國運行。

So overall, if we are looking on the overall OpEx, we had 3 main elements that eventually helped us take the OpEx down. Element #1 is the focus on the B2B and the slowdown of the B2C. Element #2 is the fact that post the 3 acquisitions that we did in 2021, we consolidated all the activities together into 1 organization, 1 R&D team, 1 product team, which is something that is saving money. And usually, companies that are making acquisitions, usually this is the trend that you see 12, 18 months later after the acquisition. So that's the reason #2.

所以總的來說，如果我們查看整體運營支出，我們有 3 個主要元素最終幫助我們降低了運營支出。元素#1 是對 B2B 的關注和 B2C 的放緩。元素 #2 是在我們在 2021 年進行的 3 次收購之後，我們將所有活動整合為 1 個組織、1 個研發團隊、1 個產品團隊，這是在節省資金。通常，正在進行收購的公司，通常是您在收購後 12、18 個月後看到的趨勢。這就是#2 的原因。

And reason #3 is the overall structure and the offshore, which is something that Dario is doing, and it's not being done by other digital health companies. And this is why we think that we build here something different that gives us the opportunity to build a real SaaS profitable business.

第三個原因是整體結構和離岸，這是 Dario 正在做的事情，而其他數字健康公司沒有這樣做。這就是為什麼我們認為我們在這裡建立一些不同的東西，讓我們有機會建立一個真正的 SaaS 盈利業務。

There is another element. Dario is a pure digital company. So if you compare us to other digital health companies on the private side that are also growing, the ratio that we have, coach per patient is very digital-driven. And this is another reason why this whole financial structure that we have can drive this company to be profitable, which is something that we don't see in the digital health space. And this is where I think investors need to understand the difference between what we are building in Dario to what exists in the market.

還有另一個因素。 Dario 是一家純數字公司。因此，如果您將我們與其他也在增長的私營數字健康公司進行比較，我們所擁有的比率，每位患者的教練都是數字驅動的。這是我們擁有的整個財務結構可以推動這家公司盈利的另一個原因，這是我們在數字健康領域看不到的。這就是我認為投資者需要了解我們在達里奧建設的東西與市場上現有的東西之間的區別的地方。

Overall, the OpEx that you see in Q4 was down by around 40% comparing to the year before. I think that this is where we're going to see the baseline, and we're going to continue with this OpEx into 2023. And overall, we're going to see a reduction in the loss, because the revenue is going to go up to our -- the gross margins are going to be this year in the range of 60% with the target of 70% next year.

總體而言，您在第四季度看到的運營支出與去年同期相比下降了約 40%。我認為這是我們將看到基線的地方，我們將把這個 OpEx 繼續到 2023 年。總的來說，我們將看到損失減少，因為收入將會減少到我們的 - 今年的毛利率將在 60% 的範圍內，明年的目標是 70%。

So what we're going to see for this OpEx that is going to stay stable, we're going to see a reduction in the loss because of the growth in the revenue and the improvement of the gross margin. So I would say that this OpEx is more or less the new baseline that we have. And from here, we are growing revenue and making our bottom line much more efficient with additional reduction in loss into next year and reduction in the burn rate of the company and the extension of the runway that we have.

因此，對於將保持穩定的 OpEx，我們將看到，由於收入的增長和毛利率的提高，我們將看到損失減少。所以我想說這個 OpEx 或多或少是我們擁有的新基準。從這裡開始，我們正在增加收入，並通過進一步減少明年的損失、降低公司的燒錢率和延長我們擁有的跑道，使我們的底線更有效率。

Okay. Extremely helpful. One last question. Just in the last couple of weeks or so, you're seeing a big uptake in the digital health side around weight loss, particularly those adding drug prescriptions like Ozempic, Wegovy onto it. I know you have a weight loss program. Is that a trend that you're seeing? Is that something you want to get more involved in?

好的。非常有幫助。最後一個問題。就在過去幾週左右，你看到圍繞減肥的數字健康方面有很大的進步，特別是那些添加 Ozempic、Wegovy 等藥物處方的人。我知道你有一個減肥計劃。這是你看到的趨勢嗎？這是你想更多地參與的事情嗎？

So this is Rick. We are definitely seeing that this is having an impact...

這就是瑞克。我們肯定看到這正在產生影響......

(technical difficulty)

（技術難度）

Excuse me, ladies and gentlemen, it does sound like we're having some technical difficulties. We ask you to please hold while we reconnect our speakers.

打擾一下，女士們先生們，聽起來我們確實遇到了一些技術難題。我們請您稍等，我們會重新連接揚聲器。

You hear me, Alex?

亞歷克斯，你聽到了嗎？

Yes, Erez. Yes, I can hear you. This is Alex here.

是的，埃雷茲。是的，我能聽到你。我是亞歷克斯。

Yes. I think that we lost Rick, sorry for that.

是的。我想我們失去了里克，對此感到抱歉。

That's okay. He just started to talk about the trend that he's seeing. So I don't know if you want to pick up where he left off?

沒關係。他剛剛開始談論他所看到的趨勢。所以我不知道你是否想從他離開的地方繼續？

Yes. I'm going to continue, yes. I'll pick it from here, yes. So we see this overall evolution with the drug. And this is where we feel that -- and this is where we have discussions with pharma companies. The one that we are working with and others, we see that overall, the digital part is going to be there as a foundation and as a connectivity to help manage the full chronic condition.

是的。我要繼續，是的。我會從這裡挑選，是的。所以我們看到了這種藥物的整體演變。這就是我們的感受——這就是我們與製藥公司進行討論的地方。我們正在與之合作的人和其他人，我們看到總體而言，數字部分將作為基礎和連接性存在，以幫助管理完整的慢性病。

When we think about weight loss as a standalone, this is where we are seeing some kind of a support for the chronic condition management. One of the things that we are running now is a study that is showing the relationship between weight loss to the overall management of the chronic condition.

當我們將減肥視為一個獨立的問題時，這就是我們看到對慢性病管理的某種支持的地方。我們現在正在進行的其中一項研究顯示了減肥與慢性病的整體管理之間的關係。

And overall, we see the comorbidity part between these 2 elements. So this is a long way to say that we think that this kind of drugs are going to make a huge change in the market. And we see these kind of things as supportive to all the digital management that we are doing.

總的來說，我們看到了這兩個要素之間的共病部分。所以說我們認為這種藥物將在市場上產生巨大的變化，這是一個很長的路要走。我們認為這些事情支持我們正在做的所有數字管理。

Your next question comes from Rahul Rakhit with LifeSci Capital.

你的下一個問題來自 LifeSci Capital 的 Rahul Rakhit。

Congrats on a solid quarter. I apologize if this has been asked before. I'm kind of jumping between calls, but we're just kind of wondering, given the level of off-cycle account growth we saw in the first half of 2022, is it reasonable to expect a similar cadence this year? Or do you anticipate heavier account growth coming in the back end of the year? Just trying to understand as you add these 100 accounts, what the breakdown might look like.

祝賀一個穩定的季度。如果之前有人問過這個問題，我深表歉意。我有點在電話之間跳來跳去，但我們只是想知道，鑑於我們在 2022 年上半年看到的非週期賬戶增長水平，預計今年會出現類似的節奏是否合理？或者您是否預計今年年底會有更大的客戶增長？只是在添加這 100 個帳戶時試圖了解細分可能是什麼樣子。

Yes. Thanks for the question. So in the Q1 of last year, we started the relationship with Sanofi and because the revenue is divided into a few buckets, one of them is data, another one is service, and another one is market access, we have seen a big spike in terms of revenue in Q1 of last year. I don't expect the same kind of milestone and the same spike in Q1 of this year. To my point to Charles from Cowen, I think that we're going to see some kind of continuation of the growth that we have seen in Q4, but not something that even reminds what we have seen in Q1 of last year.

是的。謝謝你的問題。所以在去年第一季度，我們開始與賽諾菲建立關係，因為收入分為幾個部分，一個是數據，另一個是服務，另一個是市場准入，我們看到了一個大的峰值去年第一季度的收入。我預計今年第一季度不會出現同樣的里程碑和同樣的飆升。就我對來自 Cowen 的查爾斯的觀點而言，我認為我們將看到我們在第四季度看到的某種增長的延續，但不會讓我們想起去年第一季度的情況。

Overall, when the business is growing, and we are getting more partners and more big accounts, the way that we want the business to grow is in a more kind of stable way. And we are trying to manage our overall accounts and activities in a way that we're going to see a more sustainable and less fluctuated kind of spikes in our revenues and more stable. So long story short, you're not going to see same spike.

總的來說，當業務增長時，我們有更多的合作夥伴和更多的大客戶，我們希望業務增長的方式更加穩定。我們正在努力以一種我們將看到更可持續、波動更小的收入激增和更穩定的方式來管理我們的整體賬戶和活動。長話短說，您不會看到相同的峰值。

Got it. That's helpful. And then I think at the end of Q3, you said the contract value was around $60 million. By year-end, you have 100 accounts, jumped to $65 million. So I guess I was wondering if you can just kind of share any detail on the composition of accounts that are in the pipeline for 2023. It's going to help get you to 200 accounts in terms of size or type of accounts. And maybe help us understand what that total contract value might look like once you get to 200 accounts.

知道了。這很有幫助。然後我想在第三季度末，你說合同價值約為 6000 萬美元。到年底，你有 100 個賬戶，躍升至 6500 萬美元。所以我想我想知道你是否可以分享有關 2023 年準備中的賬戶構成的任何細節。這將幫助你在賬戶規模或類型方面達到 200 個賬戶。也許可以幫助我們了解一旦您達到 200 個帳戶，合同總價值會是什麼樣子。

Yes. Thanks for the question, Rahul. I think it's very important to explain to investors how we look into account. So when we started last year, we started to commercialize our multi-condition. And as I stated, the multi-condition is like 6x more revenue comparing to a single account because of the overall privilege in the population.

是的。謝謝你的問題，拉胡爾。我認為向投資者解釋我們如何考慮是非常重要的。所以當我們去年開始時，我們開始將我們的多條件商業化。正如我所說，由於人口中的整體特權，與單一賬戶相比，多條件的收入增加了 6 倍。

The way that we are looking into the growth this year is less being focused on the number of accounts that we are signing. We want to see other parameters that are going to improve.

我們研究今年增長的方式不太關注我們簽署的賬戶數量。我們希望看到其他將要改進的參數。

#1 is the size of the account, whether we're going to sign on an employer with 10,000 employees or 20,000 employees. I think that the total amount of accounts that were big this year were less than 20, I would say, out of the 50 that we have signed on. Moving forward, we want to see a bigger portion of big accounts that are above 10,000, 15,000 users.

#1 是帳戶的大小，無論我們是要與擁有 10,000 名員工還是 20,000 名員工的雇主簽約。我認為今年的大客戶總數不到 20 個，我想說，在我們簽署的 50 個中。展望未來，我們希望看到更多超過 10,000、15,000 用戶的大賬戶。

The other element is signing on multi-condition and not single condition. And here, we are very, very confident that with the market trends and what we have seen in the second half of the year because in the second half of 2022, we have seen that 52% of the accounts that we have signed on are for more than one condition. And that's something that we expect to move forward. At the moment, in the pipeline, more than 50% of what we have is for more than one condition, which is something that gives us the confidence that we can get more multi-condition accounts or full suite accounts. And that's the second parameter that we're going to measure.

另一個元素是在多條件而不是單一條件上簽名。在這裡，我們非常、非常有信心根據市場趨勢和我們在下半年看到的情況，因為在 2022 年下半年，我們已經看到我們簽署的賬戶中有 52% 是為了不止一個條件。這是我們期望向前推進的事情。目前，在管道中，我們擁有的 50% 以上是針對不止一種情況的，這讓我們有信心獲得更多的多條件賬戶或全套賬戶。這是我們要測量的第二個參數。

And 1 more important thing is the diversification, because at the moment, if you're looking into the $65 million value that we have, you have like 1 account that is more than 40%, which is Aetna. And this is something that we'll try to -- when we move forward to have more kind of Aetnas that are going to join. And while going to a much higher contract value, we want to diversify the way that we are looking into the contracts. And this is something that I think that investors should like about Dario, because the way that we are thinking about the business is very diversified in terms of the different clients that we have.

更重要的一件事是多元化，因為目前，如果你正在研究我們擁有的 6500 萬美元的價值，你就會有一個超過 40% 的賬戶，這就是 Aetna。這是我們將嘗試做的事情——當我們向前邁進，讓更多類型的 Aetnas 加入時。在獲得更高合同價值的同時，我們希望使我們研究合同的方式多樣化。這是我認為投資者應該喜歡達里奧的一點，因為就我們擁有的不同客戶而言，我們對業務的思考方式非常多樣化。

We have both, employers and health plans, and also the different conditions that we have, which is something that gives us the ability to operate on a much more stable kind of foundation for growth. So this is how we're going to look into the growth moving forward.

我們擁有雇主和健康計劃，以及我們擁有的不同條件，這使我們能夠在更穩定的增長基礎上運營。所以這就是我們將如何看待未來的增長。

We need also to remember that until 2.5 years ago, Dario was a pure B2C company. So the brand when it comes to benefit consultant, when it comes to health plans and employers, the brand was not there. And now when we are out there and we are showing accounts that are more than 1 year old on a full suite, and we have a very good result. We were doubling our reference clients. This is something that is helping us win bigger accounts. And this is how we're going to focus our commercial team in terms of the quality of the accounts and not just the number of the accounts, and that's the next stage of the growth of the company.

我們還需要記住，直到 2.5 年前，Dario 還是一家純粹的 B2C 公司。因此，當涉及到福利顧問、健康計劃和雇主時，品牌並不存在。現在，當我們在那裡並且我們在完整套件中顯示超過 1 年的帳戶時，我們得到了非常好的結果。我們的參考客戶翻了一番。這有助於我們贏得更大的客戶。這就是我們將如何讓我們的商業團隊專注於賬戶質量，而不僅僅是賬戶數量，這是公司發展的下一階段。

Your next question comes from Ben Haynor with Alliance Global Partners.

您的下一個問題來自 Alliance Global Partners 的 Ben Haynor。

First off for me, on the B2C business at the current level throughout 2023, can you maybe talk a little bit about how much sales and marketing spend is required to maintain the present level?

首先，關於 2023 年當前水平的 B2C 業務，您能否談談維持目前水平需要多少銷售和營銷支出？

You're talking about the B2C or you're talking about the full...

你在談論 B2C 或者你在談論完整的......

Just the B2C. I mean, it's not like that kind of offsets whatever gross margin you're making from those customers. But can you kind of give us a sense of what's required there on the operating expense side?

只是B2C。我的意思是，這並不能抵消您從這些客戶那裡獲得的任何毛利率。但是您能否讓我們了解一下在運營費用方面需要什麼？

Yes. So overall, if you're looking on the overall operating expenses side, cash-wise, then we were down from 16 -- approximately [16.5] in Q4 of 2021 to somewhere around a bit less than $10 million in Q4 of 2022. And I'm talking about the cash side. I'm not looking into stock-based compensation and other elements. So this is like a 39% reduction.

是的。所以總的來說，如果你從現金方面看整體運營支出方面，那麼我們從 2021 年第四季度的 16 美元下降到大約 [16.5] 到 2022 年第四季度的不到 1000 萬美元左右。而且我說的是現金方面。我沒有考慮基於股票的薪酬和其他因素。所以這相當於減少了 39%。

As I stated before, I think that getting into 2023, this is going to be the new baseline. It might go a bit up as we are growing the revenues, but this is the baseline of the company.

正如我之前所說，我認為進入 2023 年，這將成為新的基線。隨著我們收入的增長，它可能會有所上升，但這是公司的基線。

Specifically, to your point, the sales and marketing is in the range of $3 million a quarter out of the $10 million that we have. And this is something that we expect to grow as we are moving forward on the overall -- in terms of the overall portion of sales and marketing from the overall OpEx. It's going to grow not because of the B2C, it's going to grow because we are spending more money into sales and marketing. We are expanding our teams. Our team today is bigger. We were growing it in Q4. And overall, we're going to see that the OpEx is going to grow a little bit, and sales and marketing is going to keep growing.

具體來說，就您而言，在我們擁有的 1000 萬美元中，每季度的銷售和營銷費用在 300 萬美元左右。隨著我們在整體上向前邁進，這是我們期望增長的東西 - 就整體運營支出的銷售和營銷的整體部分而言。它的增長不是因為 B2C，而是因為我們在銷售和營銷上投入了更多資金。我們正在擴大我們的團隊。我們今天的團隊更大了。我們在第四季度增長了它。總的來說，我們將看到 OpEx 會有所增長，銷售和營銷將繼續增長。

In terms of R&D, we're going to see a slight reduction. In terms of G&A, we're going to see also a slight reduction in terms of the OpEx.

在研發方面，我們將看到略有減少。在 G&A 方面，我們還將看到 OpEx 略有下降。

Okay. That's helpful and then -- go ahead. Sorry.

好的。這很有幫助，然後 - 繼續。對不起。

I was just going to say one of the things is -- on the B2C side is that we're relying more on the recurring business from our existing customers and the subscriptions that we have there and less on a new acquisition. And that's why we're able to lower the digital advertising spend in that area, in the D2C area.

我只想說其中一件事是——在 B2C 方面，我們更多地依賴現有客戶的經常性業務和我們在那裡的訂閱，而不是新收購。這就是為什麼我們能夠在 D2C 領域降低該領域的數字廣告支出。

Okay. So I guess if I'm understanding right, the attrition rate on the existing customers is probably lower than it was, call it, a year ago.

好的。所以我想如果我理解正確的話，現有客戶的流失率可能比一年前要低。

Yes.

是的。

Okay. Got it. And then can you talk about -- I know you have the milestone payments mixed in, and that obviously I would think improves gross margin quite a bit. But perhaps I'm wrong on that. But could you talk a little bit about kind of the B2B patient level or per patient per month gross margin and how that's tracking and maybe how you see it tracking going forward?

好的。知道了。然後你能談談——我知道你混合了里程碑付款，顯然我認為這會大大提高毛利率。但也許我錯了。但是你能談談 B2B 患者水平或每個患者每月的毛利率，以及它是如何追踪的，也許你如何看待它的追踪？

Yes. Generally, you're right, Ben. We have a portion in the strategic that this data and data is very high in gross margins. That's true. At the same time, looking into the pure B2B2C business, the ARR, this is -- if we are looking into the numbers of Q3 and Q4, this is already hitting -- hit the target of 70%.

是的。一般來說，你是對的，本。我們的戰略部分是這些數據和數據的毛利率非常高。這是真的。同時，看看純 B2B2C 業務，ARR，如果我們查看第三季度和第四季度的數字，這已經達到了 70% 的目標。

So this is where we feel confident that the core business, the pure ARR on the PMPM base or per engaged member per month base, this is something that is already on the target that we have. On the development side, when we are running development for parties, we are usually not running in a 70% gross margins.

因此，這就是我們對核心業務充滿信心的地方，即 PMPM 基礎上的純 ARR 或每個參與成員每月的基礎，這已經達到了我們的目標。在開發方面，當我們為各方進行開發時，我們通常不會以 70% 的毛利率運行。

So long story short, looking at the full business as a pure SaaS model kind of characteristics and ARR, we already had a 70%. And this is why we feel confident that in the overall merge between B2C to the B2B2C in 2023, we can be at the 60% target. And looking into 2024, we can hit the target of 70%. We are already there for the core business.

長話短說，將整個業務視為一種純 SaaS 模型的特徵和 ARR，我們已經有了 70%。這就是為什麼我們有信心在 2023 年 B2C 到 B2B2C 的整體合併中，我們可以達到 60% 的目標。展望 2024 年，我們可以達到 70% 的目標。我們已經在那裡進行核心業務。

Okay. Got it. That's helpful color. And then lastly for me on the Dexcom agreement, how does that work? I mean, is there any money that changes hands? Or is it mostly a technology integration? And then does the kind of higher resolution glucose rating capture, does that help you at all? And then also is something that's available to B2C customers, or is that more B2B-focused?

好的。知道了。這是有用的顏色。最後對我來說，關於 Dexcom 協議，它是如何運作的？我的意思是，有沒有易手的錢？還是主要是技術整合？然後是那種更高分辨率的葡萄糖評級捕獲，這對你有幫助嗎？然後是 B2C 客戶可用的東西，還是更專注於 B2B 的東西？

So the real drivers of that from our perspective are a fewfold. One is that we do have members on our platform today that are using Dexcom devices. We know that, but we are not able to capture as much of the information that we would want, and that's important for a few reasons.

因此，從我們的角度來看，真正的驅動因素有幾個。一是我們今天的平台上確實有使用 Dexcom 設備的成員。我們知道這一點，但我們無法捕獲我們想要的盡可能多的信息，這很重要，原因有幾個。

One is because we look to personalize the solution, more data is better. And in those cases, we're getting less data than we are from folks that are using our BGMs. And we're driving that towards having better capture, that better personalization, but that also drives, because we're on a per engaged member per month, better engagement and therefore, drives revenue from that perspective for us.

一是因為我們希望解決方案個性化，數據越多越好。在這些情況下，我們從使用我們的 BGM 的人那裡獲得的數據要少。我們正在推動它朝著更好的捕獲、更好的個性化方向發展，但這也推動了，因為我們每個月都有一個參與的成員，更好的參與，因此，從這個角度為我們帶來收入。

The other component to this, in part, is just making that available. It will be available for B2C customers to use as well as B2B, but we anticipate the primary impact of it will be on the B2B side. Also, there's a big push from not just Dexcom but others in that -- in the CGM market to try and get into the type 2 diabetic population, right, which is a lot bigger than the type 1 population, which is separately penetrated by CGM.

另一個組成部分，在某種程度上，只是讓它可用。 B2C 客戶和 B2B 客戶都可以使用它，但我們預計它的主要影響將在 B2B 方面。此外，不僅是 Dexcom，還有其他人在 CGM 市場上大力推動，試圖進入 2 型糖尿病人群，對，這比 1 型人群大得多，CGM 分別滲透.

And one of the ways that you can try and argue for the coverage of a CGM, which is much larger, is to be able to demonstrate overall cost reduction, which also implies things like hypertension, which is heavily comorbid with type 2 diabetes. And so the ability to have that data at that level is important to our partners.

你可以嘗試和爭論 CGM 覆蓋範圍的方法之一，它更大，是能夠證明整體成本降低，這也意味著高血壓，它與 2 型糖尿病嚴重共病。因此，擁有該級別數據的能力對我們的合作夥伴很重要。

And also this is part of our overall strategic approaches with Sanofi as well. So it's a direct deal between Dexcom and Dario, but there are also considerations for our Sanofi relationship.

這也是我們與賽諾菲的整體戰略方法的一部分。所以這是 Dexcom 和 Dario 之間的直接交易，但也有對我們賽諾菲關係的考慮。

Okay. Got it. And then just one last thing that I forgot to ask. When is that integration ready?

好的。知道了。然後是我忘記問的最後一件事。該集成何時準備就緒？

Well, it's ongoing at the moment. We're anticipating that we'll -- so usually what we do in terms of the steps of those as we complete what the development piece of that, then we'll put it into the B2C market for a little bit. And then we'll take that data and then we'll push it into B2B, but it will be in the first half of this year.

嗯，目前正在進行中。我們預計我們會 - 所以通常我們在完成開發部分時按照這些步驟所做的事情，然後我們會將其投入 B2C 市場。然後我們將獲取這些數據，然後將其推入 B2B，但這將在今年上半年進行。

Your next question comes from David Grossman with Stifel.

你的下一個問題來自 Stifel 的 David Grossman。

Great. I think most of my questions really have been addressed already, but I just had a couple of quick follow-ups. And one was just going back to the contributions from Aetna and Sanofi and how -- when you focus on the more development milestone-type payments, are those -- when you aggregate the Sanofi payments in '22 and you compare them to what you would expect in '23, are you thinking that it's going to be flattish? Do you think it will be a revenue headwind, tailwind? Just give us some sense of how to characterize the [more] milestone non-ARR payments and those revenue streams and how they may impact growth in '23.

偉大的。我認為我的大部分問題確實已經得到解決，但我只是進行了一些快速跟進。一個是回到 Aetna 和 Sanofi 的貢獻，以及如何 - 當你專注於更多開發里程碑式的付款時，那些 - 當你匯總 22 年的 Sanofi 付款並將它們與你想要的進行比較時預計在 23 年，你認為它會變得平坦嗎？你認為這將是收入逆風，順風嗎？只是讓我們了解如何描述 [更多] 里程碑非 ARR 付款和這些收入流，以及它們如何影響 23 年的增長。

Yes. Thanks for the question. Generally speaking, we are not a development services company. So this is something that is very important to mention. That's number one. So it's not just development. It's market access, it's data. And the way that we were designing the business a while ago is that eventually, we're going to generate revenue from users that are operating on the platform and membership.

是的。謝謝你的問題。一般來說，我們不是開發服務公司。所以這是非常重要的事情。這是第一。所以這不僅僅是發展。是市場准入，是數據。我們不久前設計業務的方式是，最終，我們將從在平台上運營的用戶和會員中獲得收入。

And on top of that, we knew that the data at some point will be monetized. And this is what we see now. So some of it is the monetization of the data to some extent, because there are a lot of things that can be learned from this data in terms of how to design a future business, specifically for pharma companies.

最重要的是，我們知道數據在某個時候會被貨幣化。這就是我們現在看到的。所以其中一部分在某種程度上是數據的貨幣化，因為在如何設計未來業務方面，可以從這些數據中學到很多東西，特別是針對製藥公司。

So the way that we are looking into the stream, and I will call it the strategic stream and not the development stream, the strategic stream where we see revenue from a combination of development and data, this is something that at least should be flat or grow because if we're going to win more strategic accounts and I think that we will win more strategic accounts, we're going to see additional need or additional opportunity to sell these kind of capabilities that the company created over the years.

因此，我們研究流的方式，我將稱之為戰略流而不是開發流，我們從開發和數據的組合中看到收入的戰略流，這至少應該是平坦的或增長是因為如果我們要贏得更多的戰略客戶，我認為我們將贏得更多的戰略客戶，我們將看到更多的需求或更多的機會來銷售公司多年來創造的這些能力。

I don't know how many companies have this kind of data that is coming from the consumer and is also now even more valuable as we are running multi-conditions under 1 integrated platform. To my note, the summary, and this is something that I was mentioning, we do see that digital health is starting to be more and more mainstream. In other words, the Sanofi interest in digital health is not just coming from Sanofi. It's coming from other big pharma companies that understand that eventually, you need to touch the users in a digital way. That's #1.

我不知道有多少公司擁有這種來自消費者的數據，而且現在隨著我們在 1 個集成平台下運行多種條件而變得更有價值。就我而言，總結，這是我提到的，我們確實看到數字健康開始變得越來越主流。換句話說，賽諾菲對數字健康的興趣不僅僅來自賽諾菲。它來自其他大型製藥公司，它們最終明白，您需要以數字方式接觸用戶。那是#1。

And #2, health plans are going to play a pure value-based kind of health care. And this is where models need to be adjusted, and getting there, you need to have a digital platform. So we expect that we're going to see more strategic partners like Sanofi and Aetna. And this is why we think that at the minimum, the revenue should be flat or even grow moving forward.

#2，健康計劃將發揮純粹基於價值的醫療保健。這就是模型需要調整的地方，要做到這一點，你需要有一個數字平台。所以我們預計我們會看到更多的戰略合作夥伴，如賽諾菲和安泰。這就是為什麼我們認為收入至少應該持平甚至增長。

And just a quick follow-up to that. I think you mentioned $65 million of bookings and that included, I think did you say 40% of that was Aetna? Is that right? I just want to make sure I got that right.

並對此進行快速跟進。我想你提到了 6500 萬美元的預訂，其中包括，我想你是說其中 40% 是 Aetna 嗎？是對的嗎？我只是想確保我做對了。

I said that 40% out of the 60% of the total revenue is the ARR, and the rest is Sanofi and Aetna.

我說總收入的60%裡面有40%是ARR，剩下的就是Sanofi和Aetna。

Okay. I thought it was about [that.] But when you think about that $65 million, how much of that is the ARR?

好的。我認為這是關於 [that.] 但當你想到那 6500 萬美元時，其中有多少是 ARR？

Almost all of it is ARR.

幾乎都是ARR。

Okay. So you didn't include development milestones and things like that in that amount then.

好的。所以你當時沒有包括開發里程碑和類似的東西。

I didn't.

我沒有。

Okay. Got you. And then just the last thing is going back to some of your commentary about expenses. I think you said you were at $10 million in cash OpEx, right, in the fourth quarter. If I heard that right, how do you -- it sounds like you want us to think about that as being a baseline and just based on your current plan that, that would be somewhat flattish into 2023. Is that the way you want us to think about cash expenses going forward?

好的。明白了然後最後一件事就是回到你對費用的一些評論。我想你說過你在第四季度的現金運營支出為 1000 萬美元，對吧。如果我沒聽錯，你怎麼看 - 聽起來你希望我們將其視為基線，並且僅基於你目前的計劃，到 2023 年這將有些持平。你希望我們這樣做嗎？考慮未來的現金支出？

Yes, the way that I want you to think about it is that eventually, we did 3 major changes. One is the consolidation of the M&A. Two is some kind of offshoring. And #3 is the reduction of the B2C into a steady state. After doing all these kind of activities, we created a new baseline, which is $10 million.

是的，我希望您考慮的方式是，最終我們進行了 3 項重大更改。一是併購整合。二是某種離岸外包。 #3 是將 B2C 減少到穩定狀態。完成所有這些活動後，我們創建了一個新的基準，即 1000 萬美元。

From here, we're going to grow the revenue. We're going to grow the -- more expenses into sales and marketing moving forward under this new baseline. And this is why I think that moving forward, we're going to see a very small growth in the OpEx, and we're not going to see significant changes in terms of spending more.

從這裡開始，我們將增加收入。在這個新的基準下，我們將增加更多的銷售和營銷費用。這就是為什麼我認為向前推進，我們將看到 OpEx 的增長非常小，而且我們不會看到更多支出方面的重大變化。

We're going to keep the spend as very close to the baseline. We're going to grow by another 4%, 5%, 6% along the year on the OpEx. And I think that in terms of the loss, we're going to see another significant reduction between 2022 to 2023 because of the gross margins that are going to be [60] for the full year on average and because the revenues are going to go up. And this is where I feel very confident that we're going to see a continuation of the reduction in the operating loss in another big step into 2023.

我們將使支出保持在非常接近基線的水平。我們將在 OpEx 上再增長 4%、5%、6%。而且我認為，就虧損而言，我們將在 2022 年至 2023 年之間看到另一次大幅減少，因為全年平均毛利率將達到 [60]，而且收入將減少向上。這就是我非常有信心的地方，我們將在進入 2023 年的又一大步中看到營業虧損繼續減少。

Ladies and gentlemen, there are no further questions at this time. I would like to turn the floor back over to Erez Raphael for closing comments.

女士們，先生們，現在沒有其他問題了。我想將發言權轉回給 Erez Raphael 以發表結束評論。

Thanks, everyone, for joining our call this morning and for following our story. Have a good day.

感謝大家今天早上加入我們的電話會議並關注我們的故事。祝你有美好的一天。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。