DarioHealth posts profit beat, revenue misses forecasts
Digital health firm DarioHealth reported adjusted earnings per share of $0.40 above Wall Street estimates, though revenue fell short of analyst projections for the quarter.
DarioHealth reported adjusted earnings per share of $0.05 for the second quarter, beating consensus estimates by $0.40, the company said in a post-market filing on Tuesday.
Revenue totaled $14.2 million, down 12% year-over-year and missing the $15.1 million average analyst estimate compiled by Refinitiv, according to the filing. The decline reflected softer demand for the company’s remote patient monitoring and chronic care management solutions.
DarioHealth attributed the earnings beat to cost controls and operational efficiencies implemented during the quarter. Gross margin expanded to 68%, up from 62% a year earlier, as the company reduced expenses related to customer acquisition and support.
The company maintained its full-year revenue guidance of $58 million to $62 million, reaffirming its outlook despite the quarterly shortfall. Management cited strong demand for its diabetes management platform as a key driver for the year ahead.
Shares of DarioHealth were down 3% in after-hours trading following the report.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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