DarioHealth Corp (DRIO) 2023 Q3 法說會逐字稿

Greetings, and welcome to DarioHealth third quarter 2023 results conference call. (Operator Instruction) As a reminder, this conference is being recorded. Thank you. It is now my pleasure to introduce your host, Glenn Garmont. Please go ahead.

您好，歡迎您參加 DarioHealth 2023 年第三季業績電話會議。 （操作員說明） 溫馨提示，本次會議正在錄音中。謝謝。現在我很高興向大家介紹你們的主持人格倫·加蒙特。請繼續。

Thank you, operator, and good morning, everybody. Thank you for joining us today for a discussion of DarioHealth third quarter 2023 financial results. Leading the call today will be Erez Raphael, CEO of DarioHealth. He'll be joined by Rick Anderson, President.

謝謝接線員，大家早安。感謝您今天加入我們討論 DarioHealth 2023 年第三季財務業績。今天的電話會議將由 DarioHealth 執行長 Erez Raphael 主持。總裁里克安德森 (Rick Anderson) 也將與他一起。

After the prepared remarks, we'll open the call for Q&A and 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 November 2, 2023.

在準備好發言後，我們將開始問答電話會議，今天電話會議的錄音和網路廣播重播也將在線上提供，詳細資訊請參閱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路廣播的人的利益。本次電話會議將於 2023 年 11 月 2 日舉行。

This morning, we issued a press release announcing our financial results for the third quarter 2023. Like a copy of the release can be found on the Investor Relations page of DarioHealth's website.

今天早上，我們發布了一份新聞稿，宣布了 2023 年第三季的財務業績。您可以在 DarioHealth 網站的投資者關係頁面上找到新聞稿的副本。

Actual events or results may differ materially from those projected as a result of changing market trends, reduced demands or the competitive nature of DarioHealth 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有重大差異。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績效與預測有重大差異。

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 third quarter of 2023 quarterly report on Form 10-Q.

本次電話會議中討論的前瞻性陳述受到其他風險和不確定性的影響，包括風險因素部分以及公司 2023 年第三季 10-Q 表格季度報告中其他部分討論的風險和不確定性。

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.

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，在該公司今天上午發布的新聞稿以及該公司向 SEC 提交的其他文件中進行了更詳細的描述。

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.

此外，本次電話會議期間可能會討論某些非公認會計準則財務指標。管理階層使用這些非公認會計原則衡量標準來制定策略決策、預測未來績效並評估公司目前績效。

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.

管理階層認為，這些非公認會計準則財務指標的呈現有助於投資者了解和評估公司正在進行的核心業務和未來前景。今天早上的新聞稿中包含了這些非公認會計準則衡量標準與最具可比性的公認會計準則衡量標準的調節表。

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

接下來，我想介紹一下 DarioHealth 執行長 Erez Raphael。埃雷茲？

Thank you, Glenn. And thanks to all of you for joining our call this morning. Q3 financial results, a continuation of our multiyear strategy and evolution of our financial quarter. We continue to look forward, we've added conviction in our investments into digital health space.

謝謝你，格倫。感謝大家今天早上加入我們的電話會議。第三季財務業績，是我們多年策略的延續和財務季度的演變。我們繼續展望未來，我們對數位健康領域的投資更加堅定了信心。

As we communicated in our recent investor day, our revenue stream can be viewed as threefold. First is our historical direct-to-consumer or B2C business. Second is the recurring revenue from health plans and employers or commercial B2B2C. And the third revenue stream that we call commercial strategic, which comes from partners like Sanofi and it's milestone driven.

正如我們在最近的投資者日所傳達的那樣，我們的收入來源可以被視為三重。首先是我們歷史上的直接面向消費者或 B2C 業務。其次是來自健康計劃和雇主或商業 B2B2C 的經常性收入。我們稱之為商業策略的第三個收入來源，來自賽諾菲等合作夥伴，並且是里程碑驅動的。

In the first quarter, our B2C business continued pace to achieve the expected $8million to $9 million a year in revenue, while remaining cash neutral or slightly positive. We expect this plan to continue in to 2024.

第一季度，我們的 B2C 業務繼續實現預期的每年 800 萬至 900 萬美元的收入，同時保持現金中性或略有積極。我們預計該計劃將持續到 2024 年。

On commercial strategic side, our commercial strategic revenue remains on track, full annual run rate of approximately $6.3 million a year. The current quarter resulted only with $200,000 (sic - see press release, " $209,000") recorded in revenue, which negatively affect our revenue compared to the previous quarter and the third quarter of 2022.

在商業策略方面，我們的商業策略收入仍處於正軌，全年運作率約為每年 630 萬美元。本季的營收僅為 20 萬美元（原文如此 - 請參閱新聞稿，「209,000 美元」），與上一季和 2022 年第三季相比，這對我們的收入產生了負面影響。

We want to be delayed with the best pharmacy revenues should be viewed on a yearly base and not quarterly base, and the economic value for us on a yearly base has not changed. We expect our commercial strategic revenue to continue at an annual rate of $6 million to $8 million a year.

我們希望推遲最好的藥品收入應該以年度為基礎而不是以季度為基礎來看待，並且我們以年度為基礎的經濟價值沒有改變。我們預計我們的商業策略收入將繼續以每年 600 萬至 800 萬美元的速度成長。

The fundamentals of our core B2B2C commercial (inaudible) that comes from recurring revenue from employers and health plan continue to grow. In the third quarter, the revenue from this channel grew by 22.7% compared the third quarter of 2022, an up 57% for the nine months ended compared to the same period in 2022 and totaled $3.9 million in 2023 compared with $2.5 million in 2022.

我們核心 B2B2C 商業（聽不清楚）的基本原理來自雇主和健康計畫的經常性收入持續成長。第三季度，該通路的營收較 2022 年第三季成長 22.7%，截至 9 個月的營收較 2022 年同期成長 57%，2023 年總營收為 390 萬美元，而 2022 年為 250 萬美元。

Our current total signed contracts estimated value is over $60 million a year, which will be recognized of ARR in to B2B2C channel as we continue to penetrate member populations. We believe that our annual revenue growth target [100% to 170%] in the B2B2C business channel can be achieved and expected to see faster revenue ramp up when we enter into 2024.

我們目前簽署的合約總額估計每年超過 6000 萬美元，隨著我們繼續滲透到會員群體中，該金額將在 B2B2C 管道中獲得 ARR 認可。我們相信，我們在 B2B2C 業務管道的年度收入成長目標 [100% 至 170%] 可以實現，並預計進入 2024 年時收入將出現更快的增長。

To reach this target, we use (inaudible) surrounding historical in all the place, and other data from members and clients. This revenue stream shows an adjusted gross margins above 70%, which will continue to drive overall gross margins higher at the B2B2C business. Channel becomes a larger percentage of our business.

為了實現這一目標，我們使用（聽不清楚）各地的歷史記錄以及來自會員和客戶的其他數據。此收入流顯示調整後的毛利率超過 70%，這將繼續推動 B2B2C 業務的整體毛利率更高。通路在我們業務中所佔的比例越來越大。

Looking forward, the growth of this B2B2C ARR channel should accelerate because of the following three building blocks. First, implementing signed contracts. We estimate that we had a $60 million in ARR in contract value. Second is the land and expand the coach an opportunity to expand existing clients, either by adding new chronic condition for expanding to additional population.

展望未來，由於以下三個組成部分，該 B2B2C ARR 通路的成長應該會加速。一是落實已簽訂的合約。我們估計我們的合約 ARR 價值為 6000 萬美元。其次是土地和擴大教練擴大現有客戶的機會，或透過增加新的慢性病來擴大到額外的人口。

The third is our partnership strategy that gives us potential access for 87 million members, securing just 1% of this population, about $17 million in ARR. So that's a very large potential.

第三個是我們的合作夥伴策略，該策略使我們有可能接觸到 8700 萬會員，僅確保了這一人群的 1%，ARR 約為 1700 萬美元。所以這是一個非常大的潛力。

I would like to touch basic on our strategic relationships, and I'll start with Sanofi. We continue to see significant financial and people resources dedicated to value by Sanofi in marketing solution in conducting the recent clinical studies. The results from three real world clinical studies done by Sanofi and third party hired by Sanofi will publish this year.

我想談談我們戰略關係的基本情況，我將從賽諾菲開始。我們繼續看到賽諾菲在進行最近的臨床研究的營銷解決方案中投入了大量的財務和人力資源。賽諾菲和賽諾菲聘請的第三方進行的三項真實世界臨床研究的結果將於今年發布。

The study showed impressive results on the clinical sites. Hemoglobin A1C improved between 1 to 2.3 points and also from a cost perspective, with an average annual savings of more than $5,000 per member per year for years of the operating on the Dario platform. This is an impressive result and usable metric to deliver to payers and (inaudible).

該研究在臨床現場顯示出令人印象深刻的結果。 A1C 血紅蛋白改善了 1 至 2.3 個百分點，而且從成本角度來看，在 Dario 平台上運作多年，每位會員每年平均節省 5,000 美元以上。這是一個令人印象深刻的結果，也是交付給付款人的可用指標（聽不清楚）。

On Aetna the highly anticipated launch of the value of our behavioral health platform is on track to January 2024, and we have insights into five employers that will enrol the platform starting January 2024. We also expanded our relationship with Aetna, and Rick will provide more details about it in few minutes.

在Aetna 上，我們備受期待的行為健康平台價值的推出預計將於2024 年1 月進行，我們了解到將從2024 年1 月開始註冊該平台的五家雇主。我們還擴大了與Aetna 的關係，Rick 將提供更多幾分鐘後即可了解詳細資訊。

We believe that the partnership is only getting stronger, and the size of the opportunity is getting larger than what we originally anticipated. Another large opportunity for us is the GLP-1 revolution. We are happy to say that through the development we made with Sanofi, we launched the product offering that defined the value platform as a solution for users on GLP-1 and other ways of strikes.

我們相信，合作關係只會變得更加牢固，機會的規模也將比我們最初的預期更大。我們另一個巨大的機會是 GLP-1 革命。我們很高興地說，透過與賽諾菲的共同開發，我們推出了將價值平台定義為針對 GLP-1 和其他攻擊方式的用戶的解決方案的產品。

According to published FDA statements to drive the need to be supported by (inaudible) unchanged. This includes onboarding and offboarding the drug as well as managing nutrition and exercises while taking it. This is exactly the type of the overall management without solution and less. Our product is already fundamentally a complement to this new market opportunity.+

根據 FDA 公佈的聲明，驅動器需要得到（聽不清楚）不變的支援。這包括用藥和停藥以及服用藥物時的營養和運動管理。這正是無解、無解的整體管理類型。我們的產品已經從根本上補充了這個新的市場機會。+

Another potential area that we are exploring will be in the GLP-1 opportunity assistance in navigating the allocation of the drug into the right patients. Given its provides implications (inaudible). We see a need for data-driven assistance in making sure that the drug is prescribed to the people at the right time.

我們正在探索的另一個潛在領域是 GLP-1 機會援助，以引導藥物分配給正確的患者。鑑於其提供的影響（聽不清楚）。我們認為需要數據驅動的幫助，以確保在正確的時間向人們開出藥物。

Let's take a deep dive into the rest of the financial results. One important metric is the gross margins, we see a pro-forma gross margin is 48.8% for the third quarter of 2023, a slight decrease from 51.5% of the revenue in the second quarter of 2022.

讓我們深入了解其餘的財務表現。一個重要指標是毛利率，我們預計 2023 年第三季的毛利率為 48.8%，比 2022 年第二季營收的 51.5% 略有下降。

Gross margins in the B2B2C channel have remained consistent at around 70%, which is our target. Margins will continue to improve towards 70% level in the longer term as the B2B2C continue to go.

B2B2C通路的毛利率一直維持在70%左右，這是我們的目標。隨著 B2B2C 的繼續發展，從長遠來看，利潤率將繼續提高至 70% 的水平。

Looking at the operating expenses and operating loss, we are saying an operating leverage of the infrastructure that we have built and the real economic advantage of the (inaudible) condition approach. Our operating expenses on a non-GAAP basis for the nine months ended September 30, 2023, a down to $32.3 million from $39.3 million for the nine months ended September 30, 2022.

從營運費用和營運損失來看，我們所說的是我們所建立的基礎設施的營運槓桿以及（聽不清楚）條件方法的實際經濟優勢。截至2023年9月30日止九個月，我們以非公認會計原則計算的營運費用從截至2022年9月30日止九個月的3,930萬美元減少至3,230萬美元。

We expect an additional 16% reduction in our operating expenses in 2024 as we continue to consolidate automated scale. Operating loss, excluding stock-based compensation, amortization of acquisition related expenses and depreciation of the third quarter of 2023 for the approximately $9 million compared to $8.4 million for the third quarter of 2022 and $7.5 billion in the second quarter of 2023.

隨著我們繼續鞏固自動化規模，我們預計 2024 年營運費用將額外減少 16%。 2023 年第三季的營運虧損（不包括股票薪酬、收購相關費用攤提和折舊）約為 900 萬美元，而 2022 年第三季為 840 萬美元，2023 年第二季為 75 億美元。

For the nine months ended September 2023, our non-GAAP operating losses was [$23.8] million compared to approximately $30 million for the nine months ended September 2022. This was due to decrease in operating expenses.

截至 2023 年 9 月的九個月，我們的非 GAAP 營運虧損為 2,380 萬美元，而截至 2022 年 9 月的九個月約為 3,000 萬美元。這是由於營運費用減少。

We expect to continue the OpEx reduction as well as the net loss reduction as our financial profile continue to take form, we expect our non-GAAP operating expenses to decrease about 10% to 15% in 2024 and our non-GAAP operating loss to decrease between 20% to 30% in 2024.

隨著我們的財務狀況繼續成形，我們預計將繼續減少營運支出和淨虧損，我們預計 2024 年我們的非 GAAP 營運費用將減少約 10% 至 15%，我們的非 GAAP 營運虧損將減少2024 年將在20% 至30% 之間。

We have a strong cash position of $44 million of which provide estimates runaway during 2025. We believe that we will become cash flow positive at about $80 million in ARR, a goal that we've see (inaudible) as we continue to improve our financial profile.

我們擁有4,400 萬美元的強勁現金頭寸，其中預計2025 年將出現失控。我們相信，我們的現金流量將達到正值，ARR 約為8,000 萬美元，這是我們在繼續改善財務狀況時看到的目標（聽不清楚）輪廓。

With that, I want to hand it over to [Rick].

說到這裡，我想把它交給[Rick]。

Thanks, Erez. As there is mentioned, in the third quarter, our B2C business continued on pace to achieve $8 million to $9 million in revenue, while remaining breakeven to slightly profitable. And we continue to see growth in our core business line. Recurring revenue from health plans and self-insured employers in the third quarter.

謝謝，埃雷茲。如同前面所提到的，第三季度，我們的 B2C 業務繼續穩步實現收入 800 萬至 900 萬美元，同時保持盈虧平衡至微利。我們的核心業務持續成長。第三季來自健康計畫和自我保險雇主的經常性收入。

Our strategic revenue was lower in the third quarter than in the third quarter of 2022 and lower than we had originally anticipated for the quarter. The majority of this was due to the timing of the milestones delivered as a result of Sanofi internal changes.

我們第三季的策略收入低於 2022 年第三季度，也低於我們最初對該季度的預期。這主要是由於賽諾菲內部變化所帶來的里程碑的時間安排。

These internal changes do not impact the annual revenue or the overall relationship with Sanofi, as Erez mentioned. As we discussed last quarter, our Aetna behavioral health platform has moved to their commercial division, and we are pleased to report that they are on track to have members on-platform with identified customers starting in January of 2024.

正如埃雷茲所提到的，這些內部變化不會影響年收入或與賽諾菲的整體關係。正如我們上季度討論的那樣，我們的 Aetna 行為健康平台已轉移到他們的商業部門，我們很高興地報告說，他們有望從 2024 年 1 月開始讓會員與已確定的客戶一起加入平台。

As a reminder, we earn revenue from this platform on a per employee per month basis for all employees who have access to the platform, which means revenue will commence in January. We expect that the population on the platform will continue to grow over several quarters post launch, as Aetna continues to sell the platform through to their self-insured employer customers.

提醒一下，對於所有有權訪問該平台的員工，我們按每位員工每月從該平台賺取收入，這意味著收入將從一月份開始。我們預計，隨著 Aetna 繼續向其自保雇主客戶銷售該平台，該平台上的人數將在發布後幾季內繼續增長。

I'm also pleased to report that we had a significant win with Aetna in the third quarter as we were selected to replace one of their existing vendors in providing digital cognitive behavioral therapy. This represents a separate win and additional revenue that will commence during the first quarter of 2024.

我還很高興地報告，我們在第三季度與 Aetna 取得了重大勝利，因為我們被選擇取代他們現有的供應商之一提供數位認知行為治療。這代表著一項單獨的勝利和額外收入將於 2024 年第一季開始。

In addition to the significant ARR revenue, this will add starting in the first quarter of next year. We also believe this demonstrates the strength of our relationship with Aetna and fuels our belief that we will continue to have opportunities to expand this relationship. We have continued to see growth from both MedOne and a large regional Blues plan that we recently launched.

除了可觀的 ARR 收入外，這將從明年第一季開始增加。我們也相信，這證明了我們與 Aetna 的關係的強度，並增強了我們的信念，即我們將繼續有機會擴大這種關係。我們繼續看到 MedOne 和我們最近推出的大型區域 Blues 計劃的成長。

And as previously discussed, we expect to see a growth of members from these two accounts throughout the remainder of 2023 and more substantially into 2024. In addition, in the third quarter, we expanded the conditions for the regional Blues plan from hypertension to also now include diabetes, which we expect to launch in the first quarter of 2024.

如同先前所討論的，我們預計這兩個帳戶的會員數量將在2023 年剩餘時間內出現成長，並在2024 年出現更大幅度的成長。此外，在第三季度，我們將區域Blues 計畫的條件從高血壓擴大到現在包括糖尿病，我們預計將於 2024 年第一季推出。

The launch of diabetes, combined with the increased promotion of the program in Q4 in 2024 by the health plan and our partner Solera are expected to result in significant growth in this account with approximately 3 million members.

糖尿病的推出，加上健康計劃和我們的合作夥伴 Solera 在 2024 年第四季度加大對該計劃的推廣力度，預計將導致該帳戶的顯著增長，擁有約 300 萬會員。

In addition, MedOne has now made Dario offering part of their standard product for new customers launching in 2024, this should further accelerate the penetration of this account. Combined these customers will ramp over the next several quarters, adding to our ARR growth through 2023 and accelerating the 2024.

此外，MedOne 現已讓 Dario 為 2024 年推出的新客戶提供部分標準產品，這將進一步加速該客戶的滲透。這些客戶加起來將在接下來的幾個季度中不斷增加，從而增加我們到 2023 年的 ARR 成長，並在 2024 年加速成長。

We continue to deliver for our customers. In a retail customer satisfaction study, 96% of our customers were satisfied or very satisfied. This has translated to a steady increase in reference customers, which are important for accelerating growth.

我們繼續為客戶提供服務。在一項零售客戶滿意度研究中，96% 的客戶表示滿意或非常滿意。這意味著參考客戶的穩定成長，這對於加速成長非常重要。

In addition, several of our existing customers are in the process of expanding, including two of our health plans, either in terms of the size of the population with access to Dario or the line of business. The majority of these expansions will commence in the first quarter 2024, with the rest expected in the second quarter of 2024.

此外，我們的一些現有客戶正在擴展，包括我們的兩個健康計劃，無論是在使用 Dario 的人口規模還是業務範圍方面。其中大部分擴建將於 2024 年第一季開始，其餘預計於 2024 年第二季開始。

In the third quarter, we saw a slowdown in self-insured employer decision making, due mostly to macroeconomic conditions resulting in several opportunities shift into next year. In spite of this, we are pleased to be adding at least 15 self-insured employers and health plans in the platforms in the first quarter of 2024, which we anticipate will result in a significant increase in ARR in the first quarter.

在第三季度，我們看到自我保險雇主決策放緩，這主要是由於宏觀經濟狀況導致一些機會轉移到明年。儘管如此，我們很高興在 2024 年第一季在平台中添加至少 15 個自保雇主和健康計劃，我們預計這將導致第一季 ARR 大幅成長。

And these additions do not include several health plans and employers that we anticipate adding in 2024 through our partnerships, including at least one national health plan. We haven't seen a strong pipeline and activity through our partnerships, which enabled the easy button contracting, integrating and the implementation for customers. Partnerships will continue to be a significant part of our go-to-market strategy.

這些新增內容不包括我們預計在 2024 年透過合作夥伴關係添加的多項健康計畫和雇主，其中至少包括一項國家健康計畫。我們還沒有透過我們的合作夥伴關係看到強大的管道和活動，從而為客戶提供了輕鬆的簽約、整合和實施按鈕。合作夥伴關係將繼續成為我們進入市場策略的重要組成部分。

In summary, we will continue to see growth of the key B2B health plan and self-insured employer business in the fourth quarter and substantial growth in our core business in 2024, we have created a growing base of B2B2C health plan and self-insured employer revenue that will carry into 2024 with strong retention.

總而言之，我們將在第四季度繼續看到關鍵的B2B 健康計劃和自保雇主業務的成長，並在2024 年看到我們核心業務的大幅成長，我們已經創建了不斷增長的B2B2C 健康計劃和自保雇主基礎收入將延續至 2024 年並具有強勁的保留能力。

MedOne and the large regional Blues plan will continue to increase revenue in 2024 as we continue to bring those customers numbers on the platform. Importantly, our partners are increasing the promotion of this programs to their members and the case of MedOne, making Dario part of their standard offering rather than an opt-in.

隨著我們繼續將這些客戶數量帶入平台，MedOne 和大型區域 Blues 計劃將在 2024 年繼續增加收入。重要的是，我們的合作夥伴正在加強向其會員和 MedOne 的推廣力度，使 Dario 成為其標準產品的一部分，而不是選擇加入。

Several of our customers are expanding, including multiple health plan customers by adding additional populations conditions who'd align to business, which will be contributing to revenue in the first and second quarters of 2024. We anticipate adding at least 15 additional employer and health plan customers on the platform in the first quarter of 2024.

我們的一些客戶正在擴大，包括透過增加符合業務的額外人群條件來擴大多個健康計劃客戶，這將為2024 年第一季和第二季的收入做出貢獻。我們預計將增加至少15 個額外的雇主和健康計畫2024 年第一季平台上的客戶數量。

The Aetna platform will launch in the first quarter of 2024 with several identified customers. And our newly expanded business with Aetna, which builds on a per employee per month basis, will launch in the first quarter of 2024 as well.

Aetna 平台將於 2024 年第一季與多個已確定的客戶一起推出。我們與 Aetna 的新擴展業務也將於 2024 年第一季推出，該業務以每位員工每月為基礎。

We have established several quality partnerships, and those partners are starting to generate the (technical difficulty) customers from growing pipelines that we anticipate will contribute significantly to revenue in 2024, including one to two national health plans.

我們已經建立了多個優質合作夥伴關係，這些合作夥伴正開始從不斷增長的管道中產生（技術難度）客戶，我們預計這些管道將為2024 年的收入做出重大貢獻，其中包括一到兩個國家健康計劃。

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

有了這個，我想把它交還給埃雷茲。

Thank you, Rick. As we look back to the strategic changes we've made in the company in the last few years, such as moving from single to multiple chronic conditions and from direct to consumer to B2B2C. We see how massively impactful they will for our goals and advancement of our business across the channel.

謝謝你，瑞克。當我們回顧過去幾年公司所做的策略變革時，例如從單一慢性病轉向多種慢性病，從直接面向消費者轉向 B2B2C。我們看到它們對我們的目標和跨通路業務的進步產生了多麼巨大的影響。

For broader perspective, as we explained in our Investor Day couple of weeks ago, our platform is best in class with clinical proof of efficacy that have been validated by real data as well as our partners. Our core business is functioning very well, and the financial profile of the company is continuing to grow.

從更廣泛的角度來看，正如我們在幾週前的投資者日所解釋的那樣，我們的平台是同類中最好的，其臨床療效證明已經過真實數據以及我們的合作夥伴的驗證。我們的核心業務運作良好，公司的財務狀況持續成長。

We are very happy with development of the (inaudible) partners like Aetna and Sanofi. And continue to see them in progress. We remain dedicated to keeping the investing public educated on the progress of the business across multiple channels we have defined.

我們對 Aetna 和賽諾菲等（聽不清楚）合作夥伴的發展感到非常高興。並繼續看到它們的進展。我們仍然致力於透過我們定義的多個管道讓投資公眾了解業務進展。

To wake up here, commercial strategic revenue could be measured on an annual basis as it is milestone driven. We expect to see this staying in line with our estimation of $6 million to $8 million a year. B2B2C employers and health plan is recovering and should grow as we continue to implement as time to come, we expect to see this revenue channel go between [100% to 170%] annually.

醒醒吧，商業策略收入可以按年衡量，因為它是里程碑驅動的。我們預計這將與我們每年 600 萬至 800 萬美元的估計保持一致。 B2B2C 雇主和健康計畫正在復蘇，隨著我們在未來繼續實施，應該會成長，我們預計該收入管道每年將在 [100% 至 170%] 之間。

From the B2C side, we are going to be stable on break-even cash flow or cash flow positive with $8 million to $9 million per year. In 2024, we expect to see OpEx reduced by additional 10% to 15%. Non-gaap net loss reduced by additional 20% to 30% non-GAAP. On these call as evidence of continued improvement of our financial profile on a consistent going forward basis.

從B2C方面來看，我們將維持穩定的損益平衡現金流或每年800萬至900萬美元的正現金流。到 2024 年，我們預計營運支出將再減少 10% 至 15%。非 GAAP 淨虧損額外減少 20% 至 30%。這些電話是我們未來持續改善財務狀況的證據。

Thanks, everyone. And I'd like to open it now for Q&A.

感謝大家。我現在想打開它進行問答。

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. (Operator Instruction) Charles Rhyee, TD Cowen.

謝謝。女士們、先生們，我們現在開始問答環節。 （操作員指令）Charles Rhyee，TD Cowen。

Yeah, thanks for taking the questions, Erez and Rick. Maybe just give us a sense on how these strategic partnerships are going? And obviously, we didn't get as much contribution this quarter. Maybe a little bit more about Sanofi relationship and how that's progressing?

是的，感謝埃雷茲和里克提出問題。也許只是讓我們了解這些策略夥伴關係的進展？顯然，本季我們沒有得到那麼多的貢獻。也許多了解賽諾菲的關係以及進展如何？

And then secondly, in light this and the pace that we're expecting with Aetna next year, and your expectations on some of the new customers that could come on board. How should we be thinking about next year's revenues?

其次，考慮到這一點以及我們對 Aetna 明年的預期步伐，以及您對可能加入的一些新客戶的期望。我們該如何考慮明年的收入？

I'll start with Sanofi and Rick can talk about Aetna. I also can talk about Aetna. When we think about the relationship with Sanofi. I mean, we had -- we're looking into two types of revenues. We have development services, we have elements related to clinical publication and data. And one of the things that we were showing and reiterating in our Investor Day is all the achievements that we had in the last year with these relationships.

我將從賽諾菲開始，里克可以談談安泰保險。我還可以談談 Aetna。當我們思考與賽諾菲的關係。我的意思是，我們正在研究兩種類型的收入。我們有開發服務，我們有與臨床發表和數據相關的元素。我們在投資者日展示和重申的一件事是我們去年在這些關係上取得的所有成就。

We had three different clinical publications that was done on top of our real-world data that we collected over the year. And we had like one of the top clinical guys from Sanofi on stage talking about it. That's a long way to say that relationship are very good. We're making progress in terms of achieving objectives on the clinical aspects with the development services aspect.

我們根據一年來收集的真實世界數據發表了三份不同的臨床出版物。我們有一位來自賽諾菲的頂尖臨床人員在台上談論這個問題。說起來關係非常好還遠遠不夠。我們在實現臨床方面和開發服務方面的目標方面正在取得進展。

Just to remind you, we developed together a Behavioral Change capabilities that related to the GLP-1, which is also something that was done together with Sanofi. On the development side, we are also doing well. And also on the commercial side, we are working together to get clients and actually made one, is one of the clients that we work together with Sanofi in order to achieve.

提醒您一下，我們共同開發了與 GLP-1 相關的行為改變功能，這也是與賽諾菲合作完成的。在發展方面，我們也做得很好。同樣在商業方面，我們正在共同努力爭取客戶，並實際上取得了一個客戶，這是我們與賽諾菲合作以實現的客戶之一。

And we think that we're going to get another few clients, including health plans that is coming from the relationship with Sanofi. Looking back, we signed a lease agreement on March 1st last year. Looking back on all three streams, the clinical development services. And the commercial, there is a satisfaction from both sides.

我們認為我們將獲得另外一些客戶，包括與賽諾菲的關係的健康計劃。回想起來，我們去年3月1日就簽了租賃協議。回顧這三個領域，臨床開發服務。而商業上，雙方都滿意。

I think that the challenging part is that the way that we anticipate how this $30 million bill is recognized, and believe it, because it's very milestone-based and that's very hard for us to communicate with the market when we're going to recognize what out of the revenue. And I think this is what created the challenge.

我認為具有挑戰性的部分是我們如何預測這張 3000 萬美元的鈔票如何被認可並相信它，因為它是非常基於里程碑的，當我們要認識到什麼時，我們很難與市場溝通從收入中。我認為這就是挑戰的根源。

And one of the things that I was trying to be very, very clear on the script, on the only call it says is that the relationship or moving to the right direction and we believe we can also take you it to the next level beyond the $30 million. This is something that we said before, and we think that the relationship is stronger than ever. Rick, you want to say something about the Aetna and the launch?

我試圖在劇本中非常非常清楚地表達的一件事是，在唯一的電話中，它所說的是這種關係或朝著正確的方向發展，我們相信我們也可以將你帶到一個超越的新水準3000萬美元。這是我們之前說的，我們認為這種關係比以往任何時候都更加牢固。 Rick，您想談談 Aetna 和此次發射嗎？

Sure. So I mean -- I think our relationship with Aetna continues to be very strong. They are -- as we mentioned, they have now identified customers on the platform, the [multi-condition] platform, which is the private label version, they're selling to their customers, and they've brought us more and more to be involved in the commercialization effort of that. So that continues to deepen.

當然。所以我的意思是——我認為我們與 Aetna 的關係仍然非常牢固。正如我們所提到的，他們現在已經在平台上確定了客戶，[多條件]平台，這是自有品牌版本，他們正在向他們的客戶銷售，他們為我們帶來了越來越多的參與其商業化工作。就這樣不斷加深。

Plus, as I mentioned here, we won another piece of business which was actually taken from Teladoc, and that's going to launch in January. So our understanding from them is they're looking to continue to consolidate vendors and we've benefited from that. I think that speaks to the relationship.

另外，正如我在這裡提到的，我們贏得了另一項業務，該業務實際上是從 Teladoc 手中奪取的，該業務將於一月份推出。因此，我們從他們那裡了解到，他們正在尋求繼續整合供應商，而我們也從中受益。我認為這說明了這種關係。

I think there will be other opportunities over the next 12 months with them also to be able to expand that. So I think the real is strong, it's showing up in terms of the business that we're increasing well.

我認為在接下來的 12 個月裡，他們還會有其他機會來擴大這個範圍。所以我認為現實是強大的，這體現在我們業務的成長良好。

And in terms of the revenue, Charles, I want to make sure that I'm investing that of the question and how we should look into revenues that were mixed during the year after. We think that B2C, our strategy is to keep it because we generate the data that we need, and it helps us to create the sandbox in order to improve the platform.

就收入而言，查爾斯，我想確保我正在投資這個問題，以及我們應該如何研究後一年中混合的收入。我們認為B2C，我們的策略是保留它，因為我們產生我們需要的數據，它幫助我們創建沙箱以改善平台。

And this one, we are keeping on a cash flow neutral or low, a bit positive or slightly positive, and this is in the range of $8 million to $9 million a year. The other part, which is the strategic, and we recognize this year some strategic that is coming from Aetna and also Sanofi. So these are the revenues that we had under the strategic.

在這一點上，我們的現金流保持在中性或較低水平，有點積極或輕微積極，每年在 800 萬美元到 900 萬美元之間。另一部分是策略性的，我們今年認識到來自安泰保險和賽諾菲的一些策略。這些是我們在該策略下獲得的收入。

And next year we think that we have a range of somewhere between $6 million to $8 million for that out, can be even more. Sanofi is guaranteed to some extent. And it just depends on how it's going to be recognized between the quarters. So that's another part.

我們認為明年我們的支出範圍在 600 萬至 800 萬美元之間，甚至可能更多。賽諾菲在某種程度上是有保證的。這僅取決於各季度之間如何認可它。這是另一部分。

We also work on other relationships that related to pharma in companies that related to clinical and data. And we believe that we're going to have more clients contributing to this revenue channel, what we are calling commercial strategic.

我們也致力於與臨床和數據相關的公司中與製藥相關的其他關係。我們相信，我們將有更多的客戶為此收入管道做出貢獻，我們稱之為商業策略。

And the third part, which is the most important part, which is the B2B2C ARR, all the membership that is coming for employers and health plans. I feel we are looking into growth that is somewhere between [100%, 170%] growth. This is very hard to predict, but the more we are implementing it becomes more predictable.

第三部分，也是最重要的部分，是 B2B2C ARR，所有為雇主和健康計畫提供的會員資格。我覺得我們正在尋找介於 [100%, 170%] 之間的成長。這是很難預測的，但我們實施得越多，它就變得越可預測。

And we are aware to the challenge that investors have and analysts have in anticipating how the ramp-up is going to look like on a quarterly base. And that's a challenge that we all trying to address.

我們意識到投資者和分析師在預測季度成長時所面臨的挑戰。這是我們所有人都在努力應對的挑戰。

Also, with our partners with Sanofi and we'll try to get it as steady as possible. But the businesses is a bit complicated, but it's ramping up. So we are confident that we're in the right path to create a growth which is more significant as we move forward.

此外，我們將與賽諾菲的合作夥伴一起努力使其盡可能穩定。但業務有點複雜，但正在加速發展。因此，我們相信，我們正走在正確的道路上，隨著我們的前進，我們將實現更顯著的成長。

Sorry, just to clarify, though. So if we look at the services revenue, which is -- I'm assuming mostly is all the B2B2C and we know we don't have really any strategic, like Sanofi related revenue in it. If we look at -- if we annualize that number, is that the number we should be growing?

抱歉，只是為了澄清一下。因此，如果我們看一下服務收入，我假設大部分都是 B2B2C，我們知道我們實際上沒有任何策略收入，例如賽諾菲相關收入。如果我們看一下——如果我們將這個數字按年計算，這是我們應該增長的數字嗎？

The 100%, I think you said 170% as we think about next year. And then, obviously, we have a steady state in terms of consumer on the B2C and then obviously some contribution from strategics.

100%，我想你說的是我們明年要考慮的 170%。然後，很明顯，我們在 B2C 上的消費者方面處於穩定狀態，並且顯然還有一些來自策略的貢獻。

No, not exactly. I said it on the B2C.

不，不完全是。我在B2C上說過。

Okay.

好的。

On the B2C, it's between $8 million to $9 million, which is the cashflow positive side, that's number one. Number two, the strategic, I provided a range of $6 million to $8 million FOMO.

在 B2C 上，它在 800 萬美元到 900 萬美元之間，這是現金流積極的一面，這是第一位的。第二，策略性的，我提供了 600 萬至 800 萬美元的 FOMO 資金。

Right.

正確的。

That's the range that is the strategic. This year we had strategic that are coming from both Sanofi and Aetna. And this is something that was total including Q3, it was $6.5 million for this year, and we have another quarter. So far year to date, it was $6.5 million.

這就是戰略範圍。今年我們的策略來自賽諾菲和安泰。這是包括第三季在內的總金額，今年的金額為 650 萬美元，我們還有另一個季度。今年迄今為止，該金額已達 650 萬美元。

But looking into next year, we'll be looking into a range of between $6 million to $8 million or more. And now, the last one, they allowed -- that is at the moment is in the [limelight] of a $5 million to $5.5 million, this one should grow between 100% to 160%, which is -- that's the core business. That's their membership, that's ARR that is coming from employers and health plans. We are counting under this bucket.

但展望明年，我們將考慮 600 萬至 800 萬美元或更多的資金範圍。現在，他們允許最後一項業務——即目前處於 500 萬至 550 萬美元的[聚光燈下]，這一業務應該增長 100% 至 160%，即——這是核心業務。這就是他們的會員資格，這就是來自雇主和健康計劃的 ARR。我們正在這個桶下計數。

The Aetna on the membership, what we are going to launch in January. But Aetna that related to building the platform, investing into the platform in a way that it can be integrated with the rest of new platform. We will considering this revenue as a strategic revenue because we did specific customizations for them and we got somewhere around $3.5 million so far.

關於會員資格的 Aetna，我們將在一月推出。但 Aetna 與建立平台有關，以一種可以與新平台的其餘部分整合的方式對該平台進行投資。我們將把這筆收入視為戰略收入，因為我們為它們進行了特定的定制，到目前為止我們獲得了大約 350 萬美元。

But next year, once we are getting the platform to production and we're going we generate per member per month on a monthly base. This one will be considered under the B2B2C ARR, which is the portion that is going 100% to 170% year-over-year, Is that clear?

但明年，一旦我們將平台投入生產，我們將每月為每位會員帶來收入。這個將被考慮在 B2B2C ARR 下，這是同比 100% 到 170% 的部分，清楚嗎？

Yeah, Okay. I got it. Yup, I'm with you. All right. Thanks. Appreciate it.

好的。我得到了它。是的，我和你在一起。好的。謝謝。欣賞它。

Thank you.

謝謝。

Thank you. (Operator Instruction) Rahul Rakhit, LifeSci.

謝謝。 （操作員說明）Rahul Rakhit，LifeSci。

Hey, Erez. I know you touched on this a little bit now, but I wanted you to just drive a little more detail on the milestones that were delayed this quarter. And maybe just help us understand what will it take to get those milestones completed and to obtain the associated revenues? Is there something that can be done and seen and pushed out to Q4? Or is it something that might take a little while longer to see those revenues come in?

嘿，埃雷茲。我知道您現在已經談到了這一點，但我希望您能就本季推遲的里程碑提供更多細節。也許只是幫助我們了解如何完成這些里程碑並獲得相關收入？有什麼可以做、可以看到、推到第四季的事情嗎？還是可能需要更長的時間才能看到這些收入？

Yeah. Overall, when we introduced this deal to the investors community who always talking about $30 million deal, it should be deliverable over four to five years. In Q2 the (inaudible) was adjusted in order to enable -- also acceleration of this $30 million deployment, that four years. And eventually the overall -- and the $30 million is between data and clinical publication, the other part related to market access and another related to development services.

是的。總的來說，當我們向總是談論 3000 萬美元交易的投資者社區介紹這筆交易時，它應該在四到五年內交付。在第二季度，（聽不清楚）進行了調整，以便在四年內加速這一 3000 萬美元的部署。最終，3000 萬美元用於數據和臨床出版，另一部分與市場准入相關，另一部分與開發服務相關。

I think that the most the lumpy less predictable about is how we are making progress from an operations standpoint with the development services that we want to do. So for example, this year we develop them medication cabinet and other elements that will support GLP-1.

我認為最難以預測的是，從營運的角度來看，我們如何在我們想要做的開發服務方面取得進展。例如，今年我們開發了藥物櫃和其他支援 GLP-1 的元件。

And all these things depends on the internal operation within Sanofi and also us in terms of defining the requirements and defining when these things can need to be delivered. Then the lot of things that are internally discussed inside an office on how they want to get this kind of features and development delivered.

所有這些事情都取決於賽諾菲內部的運作，也取決於我們在定義需求和定義何時需要交付這些東西方面的運作。然後在辦公室內部討論很多事情，討論他們希望如何實現這種功能和發展。

The best way to think about it is to think -- and I think that we also talked about it on the Investor Day a couple of weeks ago. I think the best way to look at it is to think about it on a yearly base and look into like a $6 million to $8 million on a yearly base average. And that's how we are trying to impose all these specific milestones.

思考這個問題的最好方法就是思考——我認為我們在幾週前的投資者日也討論過這個問題。我認為最好的看待方式是每年考慮一次，每年平均投入 600 萬至 800 萬美元。這就是我們努力實現所有這些具體里程碑的方式。

What we've try to do next year is to try to do as flat as possible or as balance as possible. So it will be less fluctuated and then going to be easier to the extent intermodal. And that's a conversation that we'll try to do with Sanofi in order to get at it that way. That's going to be our objective.

我們明年要做的就是盡可能做到平坦或平衡。所以波動會更小，然後在聯運方面會比較容易。我們將嘗試與賽諾菲進行對話，以便以這種方式實現這一目標。這將是我們的目標。

The damage that we feel that we are experiencing from this lumpiness of this revenues as a publicly traded company where a typical investor want to see gradual growth every quarter. It creates a lot of damage and noise in the market, and we are spending a lot of time explaining it.

我們認為，作為一家上市公司，我們正在經歷這種收入不穩定的損害，而典型的投資者希望看到每個季度的逐步成長。它在市場上造成了極大的傷害和噪音，我們花了很多時間來解釋它。

The reality is that it's very milestone driven and that's the nature of the base. So a way to address it is to educate the market like I'm doing now. Investor Day, like I did two weeks ago. They also tried to collaborate with Sanofi in order to make it more balanced across the different quarters. And that's what we've tried to do.

現實情況是，它是由里程碑驅動的，這就是基地的本質。因此，解決這個問題的一個方法是像我現在所做的那樣對市場進行教育。投資者日，就像我兩週前所做的那樣。他們還嘗試與賽諾菲合作，以使其在不同部門之間更加平衡。這就是我們一直在努力做的事情。

We need to remember that there're things that are happening in the world. I mean, Sanofi had some changes in the business in the last few quarters. So things are not related directly to us. And we feel that some of the changes that are happening even should benefit us. And this is something that is creating changes in internal planning.

我們需要記住，世界上正在發生一些事情。我的意思是，賽諾菲在過去幾季的業務發生了一些變化。所以事情與我們沒有直接關係。我們認為正在發生的一些變化甚至應該使我們受益。這正在導致內部規劃發生變化。

And we have seen also these changes inside Aetna that delayed the launch that we were supposed to have on July 1st. It's important to say that fundamentally the relationship with Sanofi and with Aetna are becoming more strong. Okay.

我們也看到 Aetna 內部的這些變更推遲了我們原定於 7 月 1 日進行的發布。重要的是，從根本上說，與賽諾菲和安泰的關係正在變得更加牢固。好的。

So I've got a lot of phone calls from investors that we're looking into the performance of the stock, and they felt that something is happening with this relationship. So that's the time to say that the relationship was getting stronger. We're confident in the launch that we're going to have January next year.

所以我接到了很多投資人的電話，說我們正在調查股票的表現，他們覺得這段關係正在發生一些事情。所以現在是說這種關係正在變得更加牢固的時候了。我們對明年一月的發布充滿信心。

And we are confident in the relationship with Sanofi that we'll execute on the existing deal and even expand into additional deals in the future. (multiple speakers)

我們對與賽諾菲的關係充滿信心，我們將執行現有交易，甚至在未來擴大更多交易。 （多個發言者）

Yes, please go ahead.

是的，請繼續。

Just to add a little. A little just specificity in terms of the changes. So the Sanofi deal is just three pieces, commercial, data and the development piece. And there was changes in the personnel on the development piece. The people that are doing the data and studies and doing commercial have not changed. We're not materially changed.

只是補充一點。就變化而言，有一點特殊性。因此，賽諾菲的交易只有三個部分：商業部分、數據部分和開發部分。而且開發部分的人員也有變動。做數據、研究和做商業的人沒有改變。我們並沒有發生實質的改變。

So there's been a period where the folks -- the new folks have been getting up to speed and that slowed down some of the things that would be normally happening in this quarter related to development. So it will stretch out -- that makes that stretch out a little bit, but it will still happen. It's just in terms of -- it took a little longer for them to get up to speed and for us to coordinate those activities as it relates to that.

因此，有一段時間，人們——新人一直在加快步伐，這使得本季通常會發生的一些與開發相關的事情放慢了速度。所以它會延伸——這使得它延伸了一點，但它仍然會發生。只是他們需要更長的時間才能跟上進度，而我們也需要更長的時間來協調與此相關的活動。

Got it. Okay. That's very helpful. I appreciate the color from you as well, Erez. I guess as in the process of trying to get people to better understand what revenue milestone, revenues, it all just might be helpful and to get some color from you guys on how dependent these milestones are upon each other. We see certain milestones get pushed off in one quarter.

知道了。好的。這非常有幫助。我也很欣賞你的顏色，埃雷茲。我想，在試圖讓人們更了解什麼是收入里程碑、收入的過程中，這一切可能都會有所幫助，並從你們那裡得到一些關於這些里程碑相互依賴程度的資訊。我們看到某些里程碑在一個季度內被推遲。

Does that mean that it's going to shift everything back in subsequent quarters and things are going to be lumpy here and maybe shift back into 2024 as well? Or across those three aspects, you've the commercial data development? Are they with the milestones within each of those channels? Are they dependent on each other or can they be achieved independently?

這是否意味著接下來幾個季度的一切都會發生變化，而且事情會變得不穩定，甚至可能會回到 2024 年？或者跨越這三個方面，你們有商業數據開發嗎？他們在每個管道中都有里程碑嗎？它們是相互依賴還是可以獨立實現？

So the commercial in the data side are not milestone driven. So the commercial is really just -- their market access team is selling the Dario solution through to their end customers, which are going to be health plans and PBMs as we saw MedOne come out and they continue to make some actually really good progress with some of the other PBMs which I think is a significant opportunity.

所以數據方面的商業不是里程碑驅動的。所以廣告真的很簡單——他們的市場准入團隊正在向最終客戶銷售Dario 解決方案，這將是健康計劃和PBM，因為我們看到MedOne 出來了，他們繼續在一些方面取得了一些實際上非常好的進展。我認為這是一個重要的機會。

On the data side, that's continuing to function. They're continuing to do and finalize the two studies that they did. Those two studies are in publication at this point, and there's follow-on analyses, et cetera, that were being done. So those are not in related with each other.

在數據方面，它仍在繼續發揮作用。他們正在繼續進行並完成他們所做的兩項研究。這兩項研究目前已發表，並且正在進行後續分析等。所以這些彼此不相關。

And If you think about the development piece is being your standard cycle of -- coming up with what we wanted to do, agreeing on that, coming up with the specific specifications for it. Having that approved on an overall basis and doing the development associated with it. That's delivering pieces within there is what those milestones are.

如果你認為開發部分是你的標準週期——提出我們想要做的事情，就這一點達成一致，提出它的具體規範。獲得整體批准並進行相關開發。那些里程碑就是交付其中的部分。

And we don't expect that there was -- I mean, I don't see those like stacking up or getting different and becoming lumpier. It's just a question of when exactly did something get approved when it shifts from one quarter to another. It moves the milestone from one quarter to another.

我們不希望出現——我的意思是，我沒有看到那些像堆積起來或變得不同並變得更加塊狀的東西。這只是一個問題，當某件事從一個季度轉移到另一個季度時，它到底是什麼時候獲得批准的。它將里程碑從一個季度移至另一個季度。

Got it. That's helpful. I appreciate that. Thanks.

知道了。這很有幫助。我很感激。謝謝。

Thank you. There are no further questions at this time. Please proceed.

謝謝。目前沒有其他問題。請繼續。

Thanks, everyone, for joining our call this morning. Good day.

謝謝大家今天早上加入我們的電話會議。再會。

Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

謝謝。女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。