DarioHealth Corp. (DRIO) Earnings Call Transcript & Summary

Thank you, everyone. We're going to go ahead and get started. So if you can grab your seat. We appreciate so many of you joining us today in person. It's great to see so many faces in the room. I'm Mary Mooney. I'm the Vice President of Marketing here at Dario. Before we begin, just a little bit of housekeeping. I'm going to ask Chuck Padala to come up and read our forward-looking statements.

Thank you, Mary, and good morning, everyone. Thank you for joining us today for DarioHealth Investor Day on The Rise of Digital Health. Before we begin, during today's event, we may make forward-looking statements. 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. For example, where we discussed DarioHealth's growth potential and return on investment, potential market opportunity, the potential benefits of its arrangement with Sanofi U.S. and a potential contract value and revenue where we're using forward-looking statements. The forward-looking statements discussed today are subject to other risks and uncertainties, including those discussed in the Risk Factors section and elsewhere in the company's annual report on Form 10-K for the fiscal year 2022 and on the quarterly report on Form 10-Q for the second quarter of 2023. As a result, both these filings with the SEC Commission and -- or the SEC. 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 presentation and the company's other filings with the SEC. 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 at the end of the presentation. With that, I'll hand it back to Mary.

Thanks, Chuck. And so I know everyone in the room is somewhat familiar with Dario. Before we dive into today's presentation, The Rise of Digital Health, we have a quick video. And so this is just to give you all an overstanding or -- understanding of Dario's Digital Health Solutions and the multichronic platform that we are sharing in the markets today. [Presentation]

So that video represents an incredible amount of progress in the last 3 years since Dario shifted away from our core focus on direct-to-consumer. And so over the last 3 years that you saw in that video is that we've been building this multi-chronic suites. Thereon, we started with 2 acquisitions, and we're able to then incorporate behavioral and musculoskeletal health. Year 2, we hit our goal of 100 commercial contracts with employers and health plans. And this year, we are leading the market in clinical research on the impact of digital health. You'll hear a little bit more about that today as we begin the presentation, and we have some wins personnel as well. I'd like to welcome our CEO, Erez Raphael. It only took him 2 years to correct me on how to say his name, 2 months for for him to learn I'm Mary, and not [ Marie ] Very excited you could benefit from my experience. Erez Raphael, our CEO.

Thank you, Mary and thanks, everyone. I'm very excited to be here. I see a lot of faces -- hi Chris. So why we are doing it today, after few years that we are running most of the things virtually and talking and meeting and so on? We felt that it's going to be a good opportunity to meet other team members. This is reason #1. So we expanded the team. The team is much larger today and much powerful today. So joining me today, you know all of you know Rick Anderson, the President of the company. We have here also Eitan Shay, who is the Chief Product Officer. We have Matt Alberico, SVP Growth. You already met [ Marie ], sorry Mary, our VP Marketing. And we have also Arnaud Robert, who is a strategic advisor for the company and former CIO, CTO at Sanofi. And we have also Felix Lee, who is leading clinical at Sanofi, so you will have opportunity to hear from firsthand from all of us. Reason # two, why we are doing it? Is because we're always telling you about the clients, we tell you about the members. They like us, they love us and so on. But we wanted to give you a first-hand impression that people really like the technology. It's not just the members, it's clients, it's also partners, and we're going to give you a few videos and few people in live that will talk about what they like about Dario? The third reason why we are doing this Investor Day that we wanted to have the opportunity to dig deeper into some of the things that are happening to get into some metric sales and to provide additional information that will help to understand where we are standing in terms of our evolvement and how we think digital health is going to shape in the future. So for those that are interested in Dario, it's a huge opportunity to get more knowledge for those that are interested in digital health I think that aggregatively here, we have more than, I don't know, 150 years' experience in digital health, between all the people that we see here. So it's a good opportunity. So just to set the stage, you've hear the story from multiple angles, and I want to set the stage with kind of common ground before we're going to listen to everyone. We were trying to figure out the most complicated way to present the company, and the way to think about it is that in the middle, you see this infinity loop, this is how we develop the product. And we said in order to build a product that is consumer-centric in healthcare, we need data. Data is key point. And in a lot of cases, we have been asked by investors, can someone replicate you in the next 2 years by investing $150 million, $200 million, $300 million? And we think that the answer is no because they need time in order to build what we have built because for many years, we were operating as a direct-to-consumer company. We collected data that feeded our engine that was building this product and after more than 50 versions of the product and 43 clinical publications that we did with [indiscernible] data, we created probably one of the best products in the market. If we look into the App Store, we have 23,000 reviews with 4.9 stars. Net Promoter Score 77. And this was done in a very unique way because we started direct-to-consumer. Think about it 7 years ago. It was not straightforward that the company that is building healthcare will go direct-to-consumer. Because healthcare start with doctors and then goes to the patient. But we did it the other way around. We said everything should start by the member, by the patient, and then we're going to go to the payers, and this is what we did. And you see the flywheel surrounding this infinity loop, where we started from B2C, then we moved to employers and health plans. And today, we have huge clients like Aetna. We have contracts with the Blues. We have partners like Sanofi, and this is a real huge recognition by the industry. So here, you can see the movement from B2C to B2B2C and also the pharma that are supporting their business and leveraging on the data that we are creating. This morning, we published another big clinical publication. It's the third one that was done by Sanofi that hired a third party, and we're going to talk about it here. So before I'm handing it over to Arnaud, a few things that you're going to hear along the presentation, and you're going to hear a lot of [indiscernible], but few -- things that I want all of you to remember. Number one is that we are probably developed one of the best products in the market. And it's not just me saying that we have the clinical publication based on real-world data that is proving it. And today, we published the publication #44. Number two, we probably played it right between the B2C to the B2B2C. Today, we have 1 of the most comprehensive solution. It's not just direct-to-consumer consumer-centric -- it's also multi-condition that is covering multi areas, which is where the market is going. The market is not willing to adopt any more point solution, and we are supporting 5 different conditions. So that's point # two. And we proved to be right because we had a series of time. And # three, the business is heading in the right direction. Gross margins are above 70% for the core business. Everything that we were talking about 2 and 3 years go about building something that is more effective, that is very lean in terms of OpEx, gross margins that are improving, losses that are going down towards profitability, we are executing toward this direction, and we're going to talk about it later when we are getting also to all the [indiscernible]. And with that, I want to hand over to Arnaud Robert.

Good morning, everyone. Let me talk to you about the acceleration of digital health, and this is an industry perspective, to be clear. So I'll give you kind of a bit more context about where the industry is heading according to what we're seeing in the market. Well, within 3 very simple points. But before we get there, just give you a bit of background on myself, I work a lot on the consumer space with some of the brands that you may recognize in the right, but also start actually my career in wellness management and I moved to Sanofi 3 years ago as a Chief Digital Officer where I met Dario -- the story continue. So the first observation of why we're seeing an acceleration is that healthcare is truly going to shift value from money paradigm. So if you look on the left side, the goals of healthcare have really not changed for the last 5 to 10 years. Improving outcomes, optimizing costs, engaging consumers. The problem is how is that reflected in reality? When you see on the right side, the reality is completely different versus those objectives. One, consumers perceive that the quality is going down. And on the right side, employers are seeing the costs going up. So the first reason where we're going to see the acceleration of Digital Health is that we have a rupture in the value cost equation of the health care today. And it's very clear that it's not sustainable and lots of reports from third parties will approve that theory. The second observation is actually digital health is game changer and has evolved quite a bit in the last few years. Right? So you have to go back a few years ago, it was versus where's it now. On the left side, if you look at central piece [indiscernible] second, what are the 3 things that are really necessary the healthcare system to obtain the objectives that we set in the first place. There's 3 things: consumer centricity, means engagement. It means adherence to treatment and it means personalization of those treatments overtime. Second thing on the bottom line is data. And as mentioned, data quite a bit. But when you look at data, it's not only a single point of data. It's what is that data for the consumer product type, the journey of the consumer. And so it [indiscernible] digital data that's very critical because that can feed algorithm, whether it's artificial intelligence etc. It feeds algorithms to understand the behavior of patients. And then the third one on the right is obviously moving to the value-based care, improving outcomes and at the same time, optimizing cost of delivering that outcome. Why is Dario Healthcare in the middle? It's literally the only solution that can provide those 3 aspects in an effective way and a scalable way. So there are 2 things, effectively -- scalable. There is no other solution that can do that. And so that's why we really think that it's a game changer. That being said, there's still a few challenges along the way, right? It's not a perfect solution yet. And a few things that are quite important. One is fragmentation. Too many solutions out there complicated for employers and help plan to navigate the number of solutions. Just as an example, about 66% of employers are about the same for health plans, feel that there needs to be consolidation so that they have less vendors to do with when they offer solutions they're consumed. Second 1 is clunky experiences. Until very recently, and we'll see some -- with -- at we see some -- that the Dario work in effort. If the experiences are too clunky, then you don't get consumer centricity. You just get consumer reach, right? And then the third one is unclear outcomes. Until very recently, and Erez mentioned some of the studies that were published with Sanofi, I was still there is it was not clear what was the outcome. And you can't really measure outcome through engagement, you have to measure it in terms of what's the actual value provided to the patient, costs, savings associated with that delivery. That's just [indiscernible] in the list. Number three, we're seeing the investments or early signs of rebound. And so, it's on the left kind of the volume and the size of deals that were happening, obviously, peaked around 2021, went down. Now we're seeing in Q2, it's starting to go back up. On the right side, you're seeing some of the big deals happening. Two things are really important on the slide. One is the average deal size in 2022 is the same as what it was when we peaked in '21, which means investors, companies, et cetera, are seeing the value still of digital health at the same level that they were seeing at in 2021, it's quite important. The second phase is that if you look at all the big innovations happening in the last 15 years, you can think of on Internet, you can think of iPhone, you can think of AI in today's world. It's very, very systematically you overestimate the short-term impact and you underestimate the long-term impact. Same things for all those things. You overestimate the short term, you underestimate the long term. We feel that an inflection point exactly at the moment where this goes from the short term to the long term overestimating to underestimating. There are 3 points why we feel the exploration is happening right now. One, rupture of the value cost equation for health care, not sustainable. Two, digital health is truly a game changer to solution the patient centricity, there's data in the value care. And three, we're seeing signs of rebound in the industry, and that's quite exciting, obviously, in terms of potential investment. With that, I will turn it to Rick.

Thank you. Welcome, everybody. Several folks in here would have heard me talked about our Sanofi relationships [indiscernible] strategic relationships that we are most excited about that we've done over the last couple of years. We're getting near the end of our second year of this. It's a $30 million 5-year deal. It's composed of 3 parts: the first of which is we're co-selling the Dario solution into their customers. So we instantly got a sales force of about 25 people in the market access team that is selling into health plans and PBMs. We saw the first customer come out of that a couple of months ago, a PBM that we launched that has a number of existing people on their platform and it is also rapidly growing, and they're making Dario an opt-out solution for the go-forward solution. So we expect that we're going to see a bigger lift of that in the future. And we also are excited about the other PBMs, and Matt will talk about this some later in the presentation that are in the pipeline that we're expecting moving forward. So they really gave us a lot of access to PBMs that Dario standing on its own would not otherwise have on top of the health plan relationships. The second part is just that they wanted to understand some of their ideas and see how those played out on our platform. And one of the key elements mainly which we deal with the high level of engagement and the number of members that we have on the platform and what that means in terms of how those features and how they're able to look at those. And we've completed the first set of those features. We've tested them into the B2Cs part of our business. They played very well, and we've moved them into the B2B side of the business. And lastly, and the one that I want to focus on today has really been the data. So they took all of our data. They went to a third party. They've done -- conducted studies that are some of the most rigorous studies that have been done in the digital health space. And the key element of this and the rigor associated with it when you're doing these kinds of studies is the ability to go back to, as Arnaud just mentioned, health plans, which are very discerning in terms of the quality of the data. They're very sophisticated in that area and really live with that. And we believe that, that's the key because if you look at digital health and health plan so far, you see health plans selling through digital health solutions, self-insured employer customers, but they're not using them in their own at-risk populations. And we're just starting to see that. And if you look at Dario, for example, we have 3 Medicaid plans at this point where they actually have it in their full [indiscernible] population. That is unusual in the industry. And the data that's coming out that Sanofi has done both on the clinical side, which showed a significant and meaningful difference as well as the fact that we're seeing it on the financial side. So with that, I would like to bring -- ask Felix and Mary to come back up and talk about the studies that we have.

So yes, we're very excited, as you heard Arnaud state earlier, we have Felix Lee here with us from Sanofi, and Felix in your role as heading up digital research for Sanofi U.S. You do a lot of surveys of the market, really understanding what data is out there. Could you give us your perspective on the state of evidence today in digital health.

[indiscernible] Mary. So digital health in terms of the evidence landscape is quite nascent because digital health is a ecosystem of players made up of many smaller players and the data that you get and the evidence that is being generated far by these companies who have been able to amass users so that they can analyze data, which typically ends up being within their own solution. And so you look at before and after effects. And there is not a very easy way to compare to outside versus non-users. And we see a lot of that in the digital healthspace. And so it's quite nascent and very different to how we see -- how -- the digital -- the evidence landscape for pharmaceutical drugs, for example, typically [indiscernible].

It's a little bit immature compared to the pharmaceutical industry.

Very much so. And at the same time, what I would say though, in the nonprescription digital health solutions space, where evidence is not mandatory, Dario stood out to us even at the beginning has been very data focused. They already have generated a lot of [indiscernible] even before our relationship. So I think what we're discussing here is really stepping up from good to great.

Good to great. Yes, I like that. So when we partnered to raise the bar for evidence generation in digital health, we had a specific approach to do that. Could you share a little bit about the strategy for our research initiatives?

Yes. And that's really going back to our roots of understanding how to build clinical studies and evidence generation. So we did initial insight gathering from players in the market to really understand what they needed and what they needed to make decisions on -- and a couple of key things that we learned. One is that they wanted to see comparison data. They don't just want to see what's been happening before and after the same people. That is important. But to them, it's enough. So they want to see a [indiscernible] and they wanted to see data in the real world. At the end of the day, the payers are paying for people actually in the populations that they're covering, not a controlled -- not a controlled sample of people that may not be very representative to their position --

And so to get to those data points that the payers were needed to really close that shaft, how did we structure the research so we could provide that to them.

Yes. So after these insights, what we -- and we listed the gaps in the market, we decided on doing 2 studies, one on clinical outcomes and then the other one on economic outcome. So clinical outcomes, meaning that we actually look at the actual -- so this is -- this was in the patient of diabetes -- patients. And we wanted to look at the actual clinical outcomes, which normally is being measured by hemoglobin A1c, and that is really looking at the control of diabetes over time, and that is the gold standard clinical marker. So we wouldn't be able to do that. And so -- and then economic-wise, we wanted to see what the resource utilization situation is? And also what are the cost implications and financial implications coming out.

Right. Well, have it impact their bottom line eventually.

Yes, exactly. So then the way we did it was -- so we structured the study in a way that it was -- it took a conservative approach to technology evolution, so it was a retrospective study and taking advantage of all the data that Dario has already accumulated with its user base from over a long period of time. And this allowed us to get study results -- and this was more timely and the results stay more relevant. And then in terms of [indiscernible] mobility. What we did was we took the Dario user data. We linked it with external data sets with claims, electronic medical records and laboratory data so that we can really build nonuser groups as well. So to really be able to generate an apples-to-apples comparison as much as possible. So we've been very intentional in how we design study. We've covered a broad range of different [indiscernible] we understood that the players [indiscernible] and we've been rigorous in the design as well as in pursuit of really delivering meaningful outcomes.

So really structured to deliver exactly what the payers needed and in this fashion that met this bar of clinically rigorous approaches that they're looking for as well. And I know we've got the results behind us, but could you walk us through some of the most significant findings?

Yes. So I have already split it into the 2 parts. So the clinical outcomes first. And so what we saw was Dario users had an average of 1 to 2.3 points drop in A1c before and after use -- after 6 months -- on top of whatever their usual care is and this translated into [indiscernible] versus nonuser impact. And from a population perspective, we saw that 9% more Dario users, the A1C dropped to below 8% and 8% is significant because that is the gold standard measure from CMS on what defines good control for diabetes management. And we're happy to also share as of today, we [indiscernible] new data out, that shows that even at 12 months, that 9% below 8 points of A1c that has sustained through in our 12-month analysis as well. So we showed sustainability in clinical [indiscernible]. And then on the financial side, so 2 parts there. First is we saw in terms of healthcare utilization reduce also a 9% reduction, and this is the 9% reduction in medical resource use of any cause in the diabetes patients. And that included a 23% reduction in hospitalizations. And the new data that we released today actually showed that with the hospitalized group, the average length of stay in the hospital fell down from 8.8 days down to 7.3 days. So that's an 18% drop. And then 30-day readmission, was a reduction of 36%. And all of that in terms of utilization translates into just over $12,500 worth charges in the medical use setting and despite seeing an uptick -- potential uptick in the use of office visits, the average office visit was down by some $1,800 in charges versus nonusers. And that translates into an estimated cost savings of roughly just over $5,000 [indiscernible] for the payer. Because the payers don't pay for the charges to pay with costs at the end of the day. And 90% out of this 5,000 plus is due to hospital-based care.

So significant finding. And really, from a clinical perspective, what we're seeing then is we're building this value chain for payers of what digital health is doing for people in between or on top of doctors' visits by really improving clinical outcomes to reduce the costly measures of care like hospital stays, readmissions and things that payers really used to then. That's their benchmarking in terms of the criteria. They want to see digital health companies impacting and being able to then roll it out for them over time has been building this very strong story, pretty incredible results for a digital health solution.

Yes. And it really shows that Dario can support patients in between points of care, and that helps optimize cost for the health business.

Yes.

And of course, with any studies, we've -- in those studies of this type of their limitations. But at the same time, we've thinking a lot of that to be very rigorous in the design so that we really are trying to minimize those biases.

So this is significant for Dario. For Sanofi, we were obviously very excited to see all of these data points to come back. And then really, as you just said, I mean, it's showing the way that people can access care in a different fashion and the impact that can have -- what are the implications for this in the market generally?

Oh, and there was one more thing because it was on engagement. So the -- so we also release some day-to-day around engagement. And it's the first time we've been looking at the Dario user base around whether we can find a relationship and association between engagement of uses on the platform and the clinical improvement in outcomes. And we did find that there was -- the more frequently users engaged on [indiscernible] that was associated with [indiscernible] A1c improvement and the effect [indiscernible].

Yes. So that's great because we -- as you'll hear later, we're very much focused on designing for outcomes-based engagement. So it's great to see that validated by this research. And so to pick up, are you -- were saying a little bit earlier before that, this has implications, though, more broadly, how we think about care and digital health and how that can play a role.

Yes. So when I look across the 2 studies in totality, I mean, what -- will be able to see is that our studies have been able to show improvement in the use of Dario results has resulted in an improvement in our clinical outcomes. It has a reduction in health care resource utilization, which translates into a reduced cost for the health system and also then reduce cost of the payers. And -- in that, when you double click on it, we are seeing a shift also that there is less use of more expensive hospital base and shifting that more into the primary setting, primary care setting, which we know is less costly to health system and is more the preferred mode of managing and engage for me is really a good link to Dario's consumer DNA routes. And that focus on engagement, we are now building on the data that Dario [indiscernible] has around engagement to be able to then associate [indiscernible] clinical improvement and outcomes as well. So I think all in all, we took what peers wanted to see. And now we are able to come back to the payers and showcase what these results -- and we are getting interest more interest in the market to understand the studies and also understand the results. And maybe just to kind of put sort of bow on all of this. We go back to what Arnaud was saying earlier is 3 goals of healthcare. So I think Dario with these study results, I think we're able to see that it would help improve meaningful outcome. It just reduced costs. And then with an improvement in user experience. And I would also add, for a nonprescription digital therapeutic like Dario are going directly to consumers, we also help [indiscernible] not add additional burden to physicians, and that constitutes the [indiscernible] in healthcare delivery.

Great way to sum it up, yes. So we're hitting all 4 of those key things that people are looking for. In the market from these types of solutions and really does prove what some of Arnaud was saying earlier around how digital health can be a critical way to transform the way we deliver healthcare and then access health care today.

So that's why we are very excited about the data points.

Great. Well, thank you so much for coming today and helping explain the value of all these great data points. We look forward to the next release of our data with you and Sanofi and appreciate this partnership and around the research and everything else. So all of this great research is very important, as you've heard on how we are helping drive adoption in the market with payers. And so, we also wanted you to be able to hear from a payer directly. So we do have today remote via video, Jamie Zajac from Colorado Access. So she will tell you a little bit more about why they selected Dario, why our payer clients are really finding Dario to be a valuable part of how they manage population health. [Presentation]

[indiscernible] Colorado Access and to give you a better understanding of why our clients and our members love Dario Solutions. I'm going to welcome Eitan, our Chief Product Officer to the stage.

Hey everyone. [indiscernible] meeting today. First thing is how consumer obsessed we are and how easy is our experience [indiscernible] consumer. [Presentation]

I can show you demos or I can share with you what members are saying about us. So if you'll go to the App Store. You'll over 20,000 active users and see an average rating of 4.9 stars out of 5. And you will see a Net Promoter Score of 77. Net Promoter Score 77 is higher than Netflix. Just to give you like a [ context of life ] how much [indiscernible] of what will be for them. It's pretty aggressive. It translates to high utilization on our platform. And what I want to share is that on average, Dario member spend in over 2 hours on our platform [indiscernible] want to contrast it with the standard of scale today. I think we're looking at about an hour this year, [indiscernible]. So that's the difference, and this is why we believe that Dario is but well situated to make it -- meaning to [indiscernible]. I also want to talk on the full [indiscernible]. And as you can see, members with founding conditions often deal with more than one chronic diseases, dealing with multiple qualities. And our platform alone, the average Dario member is managing 2.4 [indiscernible]. There's multiple implications on the clinical side, 1 place, 1 platform to manage all of your health and everything that we do is a plan to get pricing [indiscernible] part of the results to justify this approach. There's also a commercial benefit. And suddenly, instead of being relevant to 8% or 9% of the U.S. population that are dealing with diabetes, we can be relevant to 40% to 50% of the U.S. population that are dealing with diabetes, with hypertension, with weight management, MSA or with a mental wellness issue. The super powerful approach. We've also integrated in a clever way. We didn't just assemble point and solution that are stand-alone. We've integrated into a single experience where our collection of devices and [indiscernible] integrate is going to want to create [indiscernible] -- and how we're using data just at your own Netflix experience may be different than your friends. Just like your Amazon experience may be different than your friends. So is the Dario experience, personalized and different for every single member on our platform. We use machine learning algorithms to leverage third-party data, data that are -- our members enter on our platforms, whether it's on our devices or whether it's on like our platform, and we combine it with third-party data eligibility files, plain data files, ample healthcare data and so on. And we can make real-time decisions for our members in order to personal their experience on enrollment to engagement. This is another example of like the 6 domains of personalization that our algorithms are able to make in real time. And if we're trying to drive an engagement, if we're trying to lead the clinical outcome, we're not just like trying to increase frequency and message the same message to the same user all of the time. We -- like our algorithms can detect that maybe we need to change the tone maybe actually for a specific user, we need to lower the frequency in order to drive the outcomes that we want and we can make those decisions in real time. What else is that we will instrumented the platform in a way that we can tie all of the actions that we are doing all the actions that our members are doing and tie them back to clinical outcomes. Now, I won't go through all of the bullet points here, but these are like a handful, like a sample of like few clinical papers that we've published where we're showing how members are using our platform and what type of engagement leads to what type of clinical outcome. Now how does it all play together? How do we take like our consumer obsession, our holistic approach and our data-driven approach and put it to play? I think you've all heard about like GLP-1, we are approaching it very closely, and we see that like the results are great and I think they have something that like we want to be a part of -- and what we're able to do is able to -- so what whatever to do like the GLP-1 by itself doesn't work by itself. It needs to be augmented by behavioral change. And the FDA says so itself that you need to use GLP-1 in combination with a behavioral change around nutrition and access. And these are the things that Dario excel sustainable behavioral change. We're augmenting our experiences to support people with GLP-1, leveraging the core competencies of our platform and now looking into navigation. We all know that like not everyone should be on GLP-1, that the cost of the drug is expensive. And we're looking in a way to figure out like who should get it and when and do it in an ROI positive sustainable pressure form. This is like one example of the things that we're doing. With that, I would like to share some [indiscernible]. [Presentation]

Thanks Eitan. So before handing over to Rick and then Matt to talk about those go-to-market strategy, and clients and partnerships. And just a few words because this is something that we hear a lot and the whole evolution of GLP-1 and the place of digital health in GLP-1. When we are talking about taking the healthcare to be much more consumer-centric and much more digital. When we think about what we do, we are driving the overall change. This is what we do. And I know a lot of us that are consuming the drug. And one of the things that are concerning people, can I make this change sustainable? Will I have to use GLP-1 for the rest of my life? And the behavioral change is it's not just a slogan. It's a real thing that help people adopt habits for a long period of time. And this is where Dario responded very quickly to the change in the market. And actually, we did it together with Sanofi, and we released a new version that is supporting the overall change for GLP-1, but this is not the only opportunity. The other opportunity is how we can help those that are funding the GLP-1 to choose who should get this drug and how to optimize the budget allocation of the GLP-1. In a lot of cases, we need to get different type of treatment because they are -- before they're getting the GLP-1. And as we know, GLP-1 is not a cheap drug, and this is something that will require a whole strategy on how to allocate it and how to operate there. And this is something that we can be part of and we're going to do something about it in the future. But we can save some of the discussion about GLP-1 and other subjects to the Q&A session. And I want to hand it over to Rick to talk about the go-to-market strategy.

Thank you, Erez. So this is probably not a huge surprise to anybody in the room. We've seen this number several times. And if you look at the fact that we're covering the 5 [indiscernible] the TAM of about -- yes, about $170 billion. But I think the really important point here is , if you look at digital health as a whole, we're probably only penetrated in that a couple of percent, 2%, maybe 3% at most. So the opportunity is not just huge, but we're in the very, very early stages of being able to penetrate this opportunity. And if you look at what is the market demand? This is a slide that comes from the employee benefit new survey that they did, which said, how important is wellness and digital health on an overall basis to your health strategy? So in other words, how connected are these things when they think about benefits and whether they're looking to [indiscernible] see from the line that ends up at the top here that over a period of time, this has become more and more important. And so people are thinking about these things in a more holistic manner, and you see this throughout the market in terms of what they're looking to buy, how they're looking to buy. And this looks at in the same study. It's looking at what are the conditions that are costly to people over a period of time? And what are they looking to try and address? See here -- there's 3 of the top 5 are ones that Dario is covering the other 2 are in the bottom line here. So everything that we're covering is top of mind to our employer and health plan partners, Largely, this is because they have high levels of prevalence and they have high costs associated with it. So these are the kinds of things where they think about what am I trying to do with my strategy, my wellness, my connectivity matters. These are the types of programs that they're looking to cover. And I love this one because it talks about, well, what are they buying based on? And if we say, look, employee satisfaction is important. Eitan just went through and talked about what our NPS scores, what our member satisfaction score are. These are things where you're seeing people really utilize these solutions, they love the solutions. That's a big element of what people are buying on, also health-related outcomes. Felix and Mary were talking about what are the studies showing us in highly rigorous studies? We're demonstrating the outcome. So people like it. They're having results from it. And then really the last one that's on the the bottom of this page, even though we cover every single one of these is the ROI. And again, we now have studies. highly rigorous -- so that we get an ROI off of people that are on the Dario platform versus that are not. Reduction in inpatient stays, reduction what we just put out this morning in terms of people going back into the hospital, which is not just a big cost driver, but it's also a big issue in terms of Medicare where they actually will penalize hospitals and sometimes plans through stars ratings if they have high rates of utilization. So these are the kinds of things that have a direct impact on the people that are paying the bills on these -- on their bottom launch. And you've heard us talk about before the fact that the market is really looking for more conditions and less vendors. So this is a question that's asking buyers, how many digital solutions do you want to manage? And I think the key takeaways here is, it's 95% want to manage 5 or less solutions. So what that means is that they have to be able to cover more [indiscernible] with less solutions. Dario fits very nicely in that and 49% of those people want to manage 1 or 2. So other than the largest of the large employers, people are saying, "Hey, I don't want to manage the number of point solutions I've been managing. I don't want to expand the number of point solutions I'm managing. I want to really see some sort of consolidated option here associated with this. And one of the things that we're seeing in the marketplace is not just are we getting traction with our overall stated services, but in cases where somebody is looking to fill a hole maybe that they are seeing in their benefit structure, it's a good thing that we can say, hey, you can move Dario on paper [indiscernible]. And later when it comes up, your contract comes up, you want to move diabetes under the Dario platform you can do that, too, right? So there's 2 ways that that's playing through our benefit. And, yes, this is really just showing where Dario is relative to being provider-led versus consumer-centric and Dario with our direct-to-consumer routes, which we continue to burnish in terms of running the direct-to-consumer. We take that very seriously. As I said earlier, we've put new features into the direct-to-consumer to see how they respond to it and really use that as a learning laboratory for us. So we continue to be very consumer-centric. It keeps us at a route. And in terms of number of conditions, so we are higher than most people that are there. And there are some like Aetna briefly, where they're covering almost as many conditions as Dario is, but if they're doing it in modules, meaning that you don't have 1 unified user experience [indiscernible]. In terms of the business model and how we go to market, we're really going at that 3 channels. One is the health plans and PBMs. And when we talk about that, usually what we're talking about is where the health plan actually bears the list of the cost of the underlying members. So Medicare, Medicaid, as I mentioned earlier, the number of plans that we have and then fully insured commercial populations, but we will also talk about health plans in the context of as a distributor to employers, which is where you've really seen health plans function in the digital health space over the last several years. So when we talk about employers, we're talking about self-insured employers. We have a direct sales force that reaches out to and sells to those employers as well as consultants and brokers. We also approach them directly. And then we're selling through our health plans and our partner. So Aetna would be a good example of selling through because Aetna is actually our customer, but they're selling the solution that we gave them through to their customers at the end of the day. And in terms of revenue and the way that we're pricing our product, most of the time we're pricing our product on a [indiscernible] number per month. One of the advantages to Dario's highest level of engagement is it enables us to do this. And we can do it more effectively than other people in the industry. And what you saw happen, especially like you take Livongo, they were early movers in the situation. But later on 2019 and 2020, people start talking about the fact that Livongo was billing for people that were not engaged. Who think we're getting billed too much. And so that's part of the reason why Dario originally, why we went to upper engagement member per month pricing, and we have the advantage in terms of the level of engagement that we have usually, depending on exactly how many conditions that are part of that, we're charging somewhere between $59, $89 per engaged member per month. On the behavioral health side and for some of our smaller customers, we're charging on a per employee per month basis. And that price is usually in the single digits. So this is really talking about what are the economics, what does this really look like? How does this translate through? So if you look at any given population, and it will vary depending, Medicare would have higher levels of prevalence, commercial populations are going to be less. This is really talking about a commercial population. About 40% of the people are going to be eligible for our program and about 30% of those on average are going to -- we have higher enrollment. You have a couple that are a little lower enrollment, Part of that is dependent on the client and how they approach things. And of that, we're retaining somewhere between 70% and 80% of the people on the platform. So if you say, "Hey, I've got a 10,000 employee, employers, you're going to have about 1,400 people that pull in the [indiscernible] and talk about $98,000 [indiscernible]. And we talked about this on the member side, but how do clients feel about Dario? How do they feel about working with us? We've got an 89% customer satisfaction rate. They like what we're doing with their members. You've heard Jamie from Colorado Access talk about that and what the impact has been on her population. Their members are using it. So we talked about, that's a key element in the way they evaluate it, they're able to get cost savings. They're able to see improved clinical results as part of the program. As we go forward, we show them what are the readings that their members are having? How are they improving? And as a matter of fact, we now have customers -- health plan customers that have seen the results over the last couple of years and are now looking at expanding in terms of going from a Medicaid population, commercial and Medicare. And at the same time, we're building a number of reference customers. Remember, we transitioned from B2C to B2B in just beginning of 2020. We didn't really start selling into the market until 2021 [indiscernible]. We've been able to build those reference customers over a period of time. Why does that matter? It matters because when you're selling into the employer market and the same is true in the health plan market is a self-reference and they understand through the benefit consultants, what's working for people and what's not working. So the key is, it's a lot like either a mill wheel or a step function, if you will, and each step can get bigger each year based on the number of clients that you have. So when you first start, you're going to have smaller customers and you're going to have to prove yourself out. You have to show the benefit consultants, "Hey, it makes sense to show this to your other clients because they're not going to show it if they don't think it works or if they don't know. They're not going to go to their biggest customer. That's not where they try it first. There are several people in this room who know different industry, who know exactly what I'm talking about. And so this has developed over a period of time. And probably in 2023, we're actually higher than what the graph is showing now, but we have several significant reference customers and what we're seeing is the impact of that on what we have on the platform. So currently, our average is about a 2,000 employee employer. What we're seeing in terms of what's in the pipeline and what's coming in 2024 in terms of business that we've been doing is that average moves to 11,000. Obviously, there's significant difference economically between the 2,000 and 11,000. So we just talked about a second ago in terms of what those economics play out. And also on top of that, we're seeing an increase in the number of eligible conditions in terms of where we are currently, to where we're going to be as we go forward beyond and what we're looking at seeing there. So both of these lead to that compounding economics for that bigger step time and we're looking to replicate that again as we go into 2024 and beyond. And with that, I would like to turn it over to Matt Alberico to talk about our partners and our customers.

Innovative, flexible, engaging outcomes-driven, consumer-driven focus empowering. These are all words that we've heard that you've heard today from our customers and our clients. I heard it from Jamie at Colorado Access. You heard it directly from Dario members. I came to Dario from Amazon and Amazon Health, where we strive to be the most customer-obsessed company in the world. And this may be a hard to sell in this room, but money cannot replace happy customers. And this is the basis and the foundation that earned us the right to execute the strategy that Rick just talked about. And that strategy is really to grow revenue for the business in 3 different dimensions. The first is we add more people through enrollment and engagement onto the platform. We're able to do that because of our direct-to-consumer routes. Billions of data points that we have access to that enable us to anticipate when someone is going to leave the platform and meet them before they do. But the second is land and expand. So customers come to Dario and because they're delighted, they ask to add more conditions to the platform, and they bring on additional populations that they have access to. Both of these things happen without the need for a net new contract to the organization. This just occurs within our current customer population. And the third is we bring on new contracts. We are making it as simple as possible through our partnerships for customers to come to Dario. And we really look at 2 KPIs that we track closely to say -- are we successful in our mission? Are we successful in our strategy. The first is how many billable people are on the platform every month. And you can see over the course of the last 2 years, we've grown that number exponentially in a short period of time. And the second is, what are we billing for those members on the portion of the population that builds on an engaged member per month basis, we're seeing significant growth in that number as well. So the fundamentals of the business and the strategy are works. And let me tell you a story that I think illuminates how this actually works for our client. And we had a large financial services company come to us -- the only word that I can use to describe their perspective was skepticism. They had Livongo and [ Amada. ] They had deployed them both for multiple chronic conditions. They didn't see the enrollment, the engagement and the outcomes that they anticipated. So what they told us is, we'll give you 6 months to prove yourself. So in that 6 months, we delighted their client, we engage people and programs. We work with them closely and work with [indiscernible]. And as a result, that customer did a few different things that they hadn't been willing to do before. Number one, they extended the contract with Dario for 2 years. Number two, they deployed Dario to all of their associates all around the country. And number three, and this was the most important thing for us, they started working with us in partnership to communicate directly to their employees the value of Dario, something they hadn't done with any benefit spender before. And the result is obvious. We've grown revenue in a very short period of time, 33% through May of this year. And more importantly, and Rick talked about this on the last slide. They're now a key referral for us into the financial services industry, which will become a force multiplier for us in that [indiscernible]. So the challenge with digital health is when you start, it takes years to bring members and customers to the platform, then it takes more years to study those members and outcomes, and then you can earn the right to bring on strategic partnerships and large customers. But we have the benefit of having all of that data and having all those outcomes and having all those members as a result of our direct-to-consumer routes. In a very short period of time, we've been able to amass a large network of customers and partners that give us access to 15,000 employers and over 100 health plans around it. So how do we choose our partnerships? We really look at them through 3 main criteria: number one, do they give us access to large TAMs, large groups of customers through one single contract. Number two, are we aligned? Are they focused on growing engagement? Are they focused on outcomes? And are they consumer obsessed? And number three, if you put our 2 solutions together, is it going to be a better experience and outcome for the member? If we can check all those boxes, we bring on new partner. This is an example of some of our largest and most strategic partnerships. Amwell, Aetna, PlanSource, Solera, [ Alliant ] and Vitality. All in different ways give us access to health plans and employer customers. And if you add it all up, it's 87 million members just through those specific relationships. And if I apply the contracts that we already have signed across these partners, in the products in play, it adds up to close to $1.7 billion, an opportunity for the business in the very near term. Just 1% market share we get into these partnerships, grows the business by $17 million on a recurring basis. So one click closer on the 4 big partnerships we've talked about today. We launched Amwell earlier this year. We are currently in discussions with 1 of the 3 largest commercial health plans in the country as an existing customer of Amwell that would give us access to over 20 million members downstream. Solera is going to launch in July of next year, 1 of the 3 largest commercial health plans in the country, and we will be able to sell the Dario solution through their network to those employer. We talked about the customer that we launched with Sanofi. We're currently in contracting with one of the largest general purchasing organizations owned by the largest PBM in the country, that would give us access to multiple downstream PBMs to sell through Dario. And Aetna is launching on January 1, and we are bringing customers on board on January 1, and the sales motion is in process right now. In 3 hours, I'll be on the phone with one of their largest customers. That's going to give us access to 21 million commercial customers and behavioral health customers with the solution that's been deployed into the market. So Amwell, Solera and Aetna, all give us access to customers without the need to contract directly with those customers. All they need to do is say yes, and we can bring them on board. And with that, I'll turn it back to Erez.

So with that, I want to go into the financials and try to provide long-term view. And it's not a secret that it was challenging, anticipating how fast we can get these 3 contracts implemented. We were under the expectation that Aetna is going to launch, July 1 this year, eventually, it was postponed into January 1 of next year. We know by now, who are the employers that are going to go on the platform through Aetna on January 1. So I think that the chance is that it's not going to happen are very, very, very, low at that point on the cycle of the relationship that we have. So I want to focus on the flywheel and to look into the few type of revenues that we have and to help you understand the mindset and how we are looking on the revenue. So B2C is the revenue where the company started. [ CoStar ] acquisition was relatively expensive. And also the ARPU, the average revenue per user is relatively low. But this is the engine that drives the data that makes our products the best. Then we have the portion that we call it B2B2C, which is the employers and the health plans, all the partnerships that are channel partnerships like Amwell and Solera are also here. And then we have the commercial strategic on that package, we have revenues that are coming from Sanofi. And we feel that we can do more business with pharma companies because pharma see strategic direction getting closer to the users and getting more data about the users. So we anticipate that we're going to have more revenues come from this kind of bucket. And also Aetna, on the non-term member per month is also something that we are considering strategic because Aetna paid us a few millions of dollars in order to bring the factory into production. So when we look into the breakdown of these few revenues, the B2C is something that we made a decision in 2022. We take the revenues down and to slow it down, so we can be more optimized in terms of our bottom line. So at the moment, we are selling in a run rate of $8 million, maybe $9 million a year, which is a point where we are not losing money, and we wanted to make sure that on one hand, we are experiencing the features -- we talked about -- I think that Rick talked about features that we developed to Sanofi and went to B2B. Before we are taking it to B2B, it's going to B2C. We see that everything is optimized and then it's moving to B2B. So B2C will stay here. It's a sandbox, but it's not losing money. And that's an $8 million a year. The other 2 portions is the B2B2C. The first part, which is employers and health plans. At the moment, we are on a run rate of somewhere around $5.5 million a year. And this is to midpoint when he was talking about the 30-plus members that are coming from B2B. This is a [indiscernible] per month and per engaged member per month. So this is the B2B2C and then in the commercial strategic, we are looking here into 2 types of revenues. One is development services and things that we did for Sanofi and with Sanofi, with Aetna. By the way, this presentation is filed with an 8-K as we speak. So everyone can just download and take all the data. And then on the strategic side, we have another very important portion that we call it platform access and data. In other words, everything that the platform generates data and provide value to partners like pharma is something that we think is going to be part of the future business. So sometimes I hear investors talking with me about ARR, this portion of [indiscernible] that portion of B2B2C we are considering both of them recurring revenues. The more users we have, the more revenue we can generate from data as well. So if you think about what Rick was talking about, he was talking about between $59 to $89 per member per month, for every member that is on the platform, I would add on top of that, on average, 30% more revenue that should come from the data. It's very hard to predict, and it's very hard to look at it on a quarterly basis, but this is something that we already proved as a model that is working for us with Sanofi and we think is going to work with other pharma companies. That's another way to look into how we see our revenues and how we are looking to expand. So you can see here the revenue that is coming from the employers and health plans. This is only for the first half of the year. And the other 3 portions (sic) [ 4 portions ] are super important, one -- 4 portions, sorry. One is the retained user because we have a high retention rate. We keep retaining the users. And in parallel, we also have the ability to ramp up existing accounts and to enroll more users to the platform. So at the moment, after we analyze all the agreements that we have and we did like a bottom-up analysis and looks into the claims data, we estimate as of today, that we have a total $60 million just by implementing the existing account. We were talking about a higher number in the past. Now we are looking into a bit lower number because we did some bottom-up analysis with all our clients. We analyzed all the claims data. So here, we have like a clear view to ramp up revenues from accounts that we have signed on. For example, Aetna is one of these accounts. We estimate this account as a $30 million account. At the moment it's signed. We know that they have already the first few employers that are big employers in the U.S. that are going to get on the platform. We know it's going to happen in January. We don't know how quickly we can get to the $30 million in revenue, but we know we're going to start generate revenue next year. And this is the portion that is less predictable in the business. On top of that, we have the land and expand. Matt was talking about it and the land and expand is something that is already working for us. We have a health plan that is our client and signed with us on a certain amount of population. And into next year, they're going to expand the calculation based on the clinical data that they have seen. This is one example. Another example, we have one of the [blue] that will [relys] on hypertension and now they're expanding into their [indiscernible] as well. So the land and expand is another target that we have in order to expand the business. We think that this is in the range of like 20%, 25%. Every year, we can get another 20% based on what we were generating in the previous year. It's just an estimation that we have at the moment based on accounts that already we have seen them expanding either on the population or by adding additional conditions. The last part, which is what Matt was talking about, the 87 million members that we have access to our partnerships, and this is something that is much faster sales cycle for us. So on top of all these opportunities to grow the revenue that we have today, we have also the data, and the data is indicated here with this red part. So let's look into other data points on the business that are not revenue, and I'm going to get back to the revenue in the last slide of this presentation. If you made it so far, all of your [views], we have another 2 or 3 minutes before we're going to go to the Q&A. So we talked a lot about the gross margins. And we talked a lot about the fundamentals of the business because we want to be software as a service-oriented company in the health care space. We believe that eventually, it's going to generate a lot of value and how we do that. Two main characters that we want to see. Number one, gross margins that are exceeding 70%, even 75%. The core business, the B2B2C is already there. So employers and health plans that are on the platform, we are generating more than 70% gross margin. And you can see here the growth that we have. And the more we have B2B merge over the B2C the faster we're going to grow and keep the 70% gross margins. The other character of Software-as-a-Service business is the ability to well revenue from this year to the next year and the year after. And I think that also here, we start to see that the whole process and the flywheel is working. If we are looking into the operating expenses, also here, we did a significant progress in the last few years. And we took the OpEx, the non-GAAP OpEx from $55 million to $50 million, and now we are on a run rate of around $42 million. This is a chart that shows what was happening in the first half of the year. There are three main reasons why this OpEx is going down. Number one is that eventually, if you think about us, we went crazy on 2021 and acquired three companies in 12 month. And we consolidated everything relatively quickly. And the other part is the tough decision that we did mid 2022 to back then the revenues of the B2C down and avoid [tax] or cost of acquisition that was too expensive with ARPU that was too low. And then the third reason why the OpEx is going down is that we invested into the technology of making things more scalable and more automated, and we did a significant offshore. And today, the organization is operating from the U.S., Israel and India, where the majority of the employees are between India and the States. The operating loss on a non-GAAP basis, we took it down by like more than 60% in the last 2 years because of the OpEx that was going down, because of the B2B that went up and because of the gross margin that is going up. And this is the last slide of the presentation. Looking forward, what we see at the moment in terms of -- in terms of the business. So it's not a guidance, but it's a thought process of how we think about the revenues moving forward. So on the direct-to-consumer, we are looking into keeping it stable somewhere between $8 million to $9 million a year. As I mentioned before, we are looking into every dollar that we are generating from the other channels, we are looking for additional $0.30 that we are generating from data and clinical publication and insights. And we here have a clear understanding on how we're going to go there. We are already in discussions with other pharma companies and other big players that are looking into our business the same way. So that's something that should happen in the future. And then looking into the [expands] and the employers at the moment, we see somewhere between -- I know that it's a very wide range. It's very hard to be precise in the level of quarter, but we are looking into between 8% to 140% growth year-over-year for that portion of the business. And overall, we think that in the next 2 to 3 years, we're going to see a significant growth and our cash flow positive point should be somewhere around $80 million to $85 million in revenue. That's what we see at the moment. And looking to the product is already proved to be effective, gross margins are already there. Clients are happy. Members are improving clinical outcomes. We have third party like Sanofi that proved the model. And we think that now it's a matter of more implementation, more wins through the partnerships that we already put together and growing the business and being a leader in the digital health space. And this is us. So thanks, everyone. I want to open the session for Q&A. You can ask any of us questions -- and yes, please.

For the Aetna contract, is that with all of Aetna's programs? Or is it a certain portion of them. This is [indiscernible].

In terms on an overall basis, Aetna, we are now selling the solution into -- we're not selling it. Aetna is selling the solution that we gave them through to their commercial and behavioral health plans. So it's -- it wouldn't cover, for example, Medicare or Medicaid and there are nuances within the health plans. But generally speaking, it's covering their behavioral health populations who they're selling it.

And then one other follow-up, to get -- if we look at a lot of companies like remote case monitoring companies and some other digital health, getting people to sign up and then getting them to stay at [here] has been the biggest challenges. And they generally needed to include people. There's a lot of -- there's a huge amount of hiring going on now for care managers, remote nurses because just to help -- to actually keep people in it. Are you -- do you have that in your -- will you also have people and be hiring for that? Or are you planning to do it all digital?

So for a little bit of context, RPM, the billing codes for RPM, which our technology works for as well. As a matter of fact, we have a couple of customers that are still using it even though we're not pursuing that as a market, should [do though,] that. So from a clinic or a provider perspective, they have to get people onto the platform. [But the] billing are for using technology, doing 16 measures every month and they can bill for that. But the other billing codes and where a lot of these providers are finding that they have a better ability to bill is there's codes related to 20 minutes of coaching and then a second 20 minutes of coaching. So when you're talking about people adding a lot -- just to give it context, a lot of the times, they're adding those people is because they can actually bill for those. And it's, in many ways, easier than getting people to measure 16 times in a month for that. And we can pay 16, but it is what it is. On our side, we're about 90 right now, we're about 90% digital and about 10% [indiscernible]. As Eitan discussed, it's an individualized member experience. And the reality is some people want to talk to people and some people don't want to talk to people. So how can you use those coaches effectively? And we have two different levels of coaches. One is what I like to call sort of an educated health friend. So it's a lower level coach. They do most of the engagement work where somebody is talking to a coach. Then we also have what we call expert coaches. These are going to be like diabetes educators, nurses, therapists, like that kind of a level. They're coaching even though they've got a higher level of expertise. We carry those at about 1:10,000 baseload because they're used very specifically where they're appropriate. Knowledge is not the primary deficit [indiscernible].

Yes. I wanted to ask about GLP-1s. As we talked to a lot of experts in the space and try to understand what's going to come over the next few years, it's clear that there's going to be a need for employers as well as health plans to drive behavioral change among their members that are on GLP-1 drugs. You talked about your attention to support this class as well so that changes you're making product. I guess from a go-to-market perspective, how do you plan to position yourself? Can you maybe elaborate on trying there?

Yes, absolutely. Can you repeat the question?

Yes. So Lukas, the analysts from Cowen is asking about how we are taking to the market the GLP-1 enhancement that we did. And here, we -- when it comes to GLP-1, we have two aspects. The aspect #1 is enabling the platform to help those that are adopting the GLP-1 on board to the -- on the drug and then to drive the overall change. So at some point, when they are offboarding the drug, you want to create a sustainable impact beyond this drug. And this is something that we already launched. This is something that from a go-to-market perspective, it's also already embedded into the chips that we are providing for employers and health plans. This is up and running for the last 2 months already. That's not the only opportunity with the GLP-1. The other opportunity with the GLP-1 is that we think that it's going to be super important to help those that are paying for the drug to chose who should get the drug and what stage -- and here, we need to be more sophisticated on how we can help them define it from a clinical perspective. It might be related to behavioral aspect, that might be related to other chronical aspects. It will help us -- help them define who should get the drug. And eventually, everyone is trading from inflation in terms of the cost paying on this drug, and we need to help them not decide to whom not to give the drug, but to make a more thoughtful decision on how to allocate the budget. And here, we see opportunity that we're going to tap on in the future.

In some ways, it's almost a case study in terms of don't moving to value-based care. And it's very hard for payers to get value based care without detailed information at a member level to be able to demonstrate impact. So the ability to, on an aggregate basis, help them understand trends and spend and what kinds of profiles are associated with that is something that our customers are interested in trying to understand. So -- if you think about it, it's one example of as we look forward, one of the ways that digital health is going to be used as we move more and more to [indiscernible].

Okay. And then I guess another question around product features. You guys have talked about engagement being a very important aspect to your [indiscernible] platform. In the past, you've talked about AI. Can you maybe give us some detail in terms of what AI can [deliver] your product and how it is driving that engagement? And just how you see that as a competitive differentiator for your products currently? And then maybe going forward, what you could add through AI.

No, just sitting next to you. So -- so we're using AI in different ways, right? So we've got like machine learning algorithms. We're using our first-party AI, like I've said, right, like our devices, we get the data, no one has that. Members are using our platform, sharing with us how they feel, sharing other biomarkers with data points with us. And then we augmented it [indiscernible], right? So I think like we are sitting on a [indiscernible] of data that there are very few other companies that like sits on their data. So the question is like what do we do with this data, right? And I think that -- the way to think about it is like we can personalize the experience, and we can predict what the member is likely to do based on previous behaviors, right? So just like Facebook is optimizing their online advertising based on other people's behavior. We're following a similar approach, similar machine learning algorithm, similar, further question?

Yes. I guess drilling down the second part, -- how do you see that as a competitive differentiator? Are you seeing it in RFPs discussions with clients? Is that something that sets you apart? Is that...

I think we're not seeing -- I mean you see some sort of questions around it, but I don't think it's a major focus in terms of what it is. I think where we see the difference is because we have the integrated platform, and you can use those algorithms across platform with unified data in the back. It enables you to be able to provide a unique experience for the members on the platform. I think that's where people are seeing it. They're seeing it in the member experience. And then it also translates as they see members using it, they're members using it, and they talk about the fact that it's different in terms of other experiences that are out there. I think that's really where we're seeing the difference from a competitive advantage. I think that if you look at what we're able to do digitally as a result of that, from a business perspective, it helps our margins. because we can deliver that like unique experience without lots of humans in the middle of it. So I think that from a company perspective, that's also a [indiscernible].