Syra Health reports a 101% increase in revenue in Q2 2024 and more digital health earnings

Syra Health, a healthcare technology company that provides tools to analyze population health, reported a total revenue of $2 million in the second quarter of 2024 compared to $1 million in the same period last year. 

Its Population Health unit comprised 28% of the company's total revenue in Q2 2024, growing 347% at the end of Q2 this year compared to 13% in Q2 2023. 

The company has signed numerous contracts with states this year alone, including with the Health Care Authority in Washington state, its home state of Indiana and the state of Virginia. 

Cash balance at the second quarter's end was $1.6 million, with no long-term debt noted. 

"Our momentum has accelerated into the second quarter, where we achieved a 101% increase in our revenues. Our focus on higher-margin business units is proving successful, expanding our client base and diversifying our revenue streams. We are currently operating in 23 states in contrast to a handful of states a year ago," Deepika Vuppalanchi, CEO of Syra Health, said in a statement. 

Digital therapeutics company DarioHealth reported total revenue for the second quarter of $6.26 million, a 1.7% increase compared to Q2 2023, driven mainly by B2B2C revenues. 

The company's commercial and consumer revenues totaled $7.34 million "before a non-recurring price concession in collaboration with a pharma partner," the company said in a statement. This represented a 105% increase compared to the $3.57 million seen in the second quarter of last year.

DarioHealth experienced a 315% increase in B2B2C revenue, recurring revenues from health plans and employers, totaling $5.5 million in Q2 of this year. 

The company reported that it ended the second quarter with cash equivalents of $22.9 million and expects to reach cashflow breakeven by the end of 2025.

"Looking ahead, we anticipate a significant reduction in operating losses over the next three quarters driven by continued revenue growth and aggressive cost-cutting measures implemented post-Twill merger. These cost reduction initiatives, which commenced in early May 2024 and were completed in early August 2024, are expected to yield a 24% decrease in GAAP operating expenses and a 40% decrease in non-GAAP operating expenses from the first quarter of 2024 to the first quarter of 2025," Erez Raphael, CEO of Dario, said in a statement.

"Additionally, we expect gross margins to climb to 80% by the first quarter of 2025, as our core B2B2C revenues have already reached 82% gross margins in the second quarter. These combined efforts are anticipated to result in a 58% reduction in GAAP operating loss and 75% reduction in non-GAAP operating losses between the first quarter of 2024 and the first quarter of 2025, providing a clear path to cash flow breakeven by the end of 2025."