NEW YORK - DarioHealth Corp. (NASDAQ:DRIO), a prominent figure in the digital health sector with a market capitalization of $24 million, has recently announced a partnership with a Blue Cross Blue Shield (BCBS) health plan, enhancing its footprint in the health insurance market. The collaboration, which began in January 2025, integrates Dario's AI-powered health coaching and monitoring tools into the health plan's offerings, thereby contributing to the company's annual recurring revenue in the first quarter of 2025. According to InvestingPro data, the company's stock is currently trading below its Fair Value, despite facing significant challenges with a 66% decline in share price over the past year.
The agreement incorporates Dario's suite of cardiometabolic digital health solutions, including programs for diabetes, hypertension, and weight management, into the health plan's services provided to employers. This move is expected to not only boost Dario’s revenue but also extend its reach within the health plan's member population throughout the year.
Dario now collaborates with nine health plans, a mix of regional and national payers, positioning it as a significant player in the digital cardiometabolic care domain. As the market for cardiometabolic disease care is projected to exceed $1.2 trillion by 2033, Dario's latest partnership is a strategic step in cementing its role in a rapidly growing sector.
Steven Nelson, Chief Commercial Officer at Dario, stated, "We believe that securing another Blue Cross Blue Shield health plan further validates our market leadership in cardiometabolic care and reinforces our ability to scale recurring revenue growth."
DarioHealth's digital health platform is designed to provide personalized, data-driven interventions for various chronic conditions, aiming to disrupt the traditional episodic healthcare approach by offering continuous, adaptive care.
The information in this article is based on a press release statement from DarioHealth Corp. and has not been independently verified. The forward-looking statements in the press release are subject to various risks and uncertainties that could affect the company's actual results.
In other recent news, DarioHealth Corp has been the subject of numerous developments. The company saw a significant revenue increase, reporting a revenue of $7.42 million in the third quarter of 2024, marking an 18.7% increase from the previous quarter and a 111% increase year-over-year. This growth is primarily attributed to its B2B2C business segment.
However, TD Cowen analyst Charles Rhyee downgraded DarioHealth's stock rating from Buy to Hold amid concerns over the company's revenue growth trajectory. The company also confirmed the election of six directors to its board and ratified the appointment of its independent auditors for the upcoming fiscal year, as revealed in a recent Securities and Exchange Commission filing.
DarioHealth also announced the addition of four new contracts with self-insured employers, set to activate in the first quarter of 2025. These agreements are part of the company's B2B2C channel expansion. Additionally, the company has set a target to achieve a cash flow breakeven run rate by the end of 2025. These are some of the recent developments in DarioHealth Corp's ongoing operations.
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