Charles Rhyee : Yes. Thanks for the question, guys. You talked about the $61 million in contracted revenue Obviously, it sounds like the vast majority is going to have a 1/1 start in ’23 and then ramp. Is then — is that right to think that as we get into — is it right to think that as we exit ’23, we’ll be at that $60 million run rate. And then in fact, we probably would be greater than $60 million in ’24?
Rick Anderson : Based on the timing of some of those contracts in terms of how they will grow over that period of time, I would expect right now that we would be close to that as a run rate at the end of ’23. We’ve always sort of looked at it as 12 months out from the date that we have those contracts. In some cases, they’re launching a little bit later than others, but we should be approximately at that sort of a run rate by the end of ’23. And yes, we would expect it would be bigger in ’24.
Charles Rhyee : Great. And then with — you talked about it being integrated into a larger platform that you’re launching. Any sense on timing of when you expect that to launch? Or any kind of an indication that you’re hearing of when this might be launching?
Rick Anderson : I think you just highlighted the most important part which is we’re not correctly in control of some of the pieces but we expect that we will likely see some growth in the first half of the year with that accelerating effect in half of the year based on what we currently understand. But there are some pieces they could accelerate that even more. It’s partially dependent on what order they come on the platform then. So there tends to be an emphasis on larger customers over smaller.
Charles Rhyee : Larger customers of Aetna as you mean?
Rick Anderson : Of theirs, correct. Yes, because the digital platforms for their ASO Business. So they’re employers they’re selling to.
Charles Rhyee : Okay. And is that sort of like they’re going to offer this new platform. And if financial client picks the platform to get everything including Dario or they can pick and choose within the platform?
Rick Anderson : So Dario is being integrated as a technology into the platform, so we get paid for everybody that’s on the platform, but there’s also opportunities to access additional services through Dario on that platform on an overall basis.
Charles Rhyee : Okay. That’s helpful. Lastly for me. The sales and marketing came down materially in the quarter. Is this — obviously, as you kind of pull back on DTC, is this the right run rate? Or do we expect to see more savings in this line, particularly as we go into next year?
Erez Raphael: Yes. So this is mainly because of the B2C. And this is something that we guided the market already in the last quarter that you’re going to see a decline here. I think that, that’s the run rate that we’re going to see moving forward. And we believe that towards next year — mid of next year, we’re going to see this line getting back to growth because the more we penetrate, the more we’re going to invest into the sales and marketing on the B2B side.
Charles Rhyee : Got it. I’m sorry, one last one. On Sanofi, obviously, a great partner. But when you look in the diabetes market, the bigger players are Lilly and Novo Nordisk, have you — is there an exclusivity with the Sanofi deal? Are you allowed to speak to other manufacturers that are in the diabetes space. I’m just curious if your platform would fit well with some of these newer drugs in the market.
Rick Anderson : So I think a couple of things there. I think our Sanofi relationship is broader than diabetes. I mean we’re in the general medicines area primarily, although there are conversations with other parts of the organization as well. And they view it through that lens as well as more of a digital health than a diabetes issued, the co-promotion is for our full platform. So that kind of speaks to the overall relationship. We do have — there are some elements of exclusivity, but they wouldn’t prevent us from having relationships with other companies that are in the — generally in the space, depending on exactly how we structured that. We don’t see a lot of value in doing app partnership with a specific drug and the absence of a larger relationship.
We really view this — and one of the reasons why we did the deal with Sanofi was they were interested in digital health as a market and not just as a companion app to a medication. Now that doesn’t mean we would never have it as a companion app to a medication. It just means we see a broader value there from that relationship.
Charles Rhyee : That’s great clarification. I think a lot of people assume that was much more tied to diabetes. But — so is it that — so when you guys are sharing data, what are they doing with with the data right now? And how are they planning to integrate them in the broader Dario platform into their environment, I guess? How are they moving that towards their patients is the question.
Rick Anderson : Yes. And so I think that’s an evolving strategy on an overall basis with them. This was them stepping in, part of it was them validating our data for themselves. They did a bunch of due diligence upfront, but then have done some additional really deep-dive work around it. And the real-world evidence team that they’re working on is about validating the — and providing evidence for the benefits of the Dario platform for patients on an overall basis. So full suite. They’re most — I mean, yes, they will do some stuff around diabetes because obviously, the company has the longest history in diabetes. So we have the most amount of data on an overall basis in diabetes, but then rapidly moving into the overall suite because we agree with them on this, but their point of view is they’re looking at health plans primarily and their point of view is, hey, the people that have the best evidence are going to which is fully consistent, right, with the way that they look at medications on an overall basis.
So that’s kind of their view. The way that it gets integrated, I think it’s going to be in a bunch of different places. So we’re going to see some of it with their product. We’re going to see some of it in well, let’s just say, broader relationships in the ecosystem, more to come on that later. And then I think ultimately, they’re looking at it is how they get closer to the folks that are using their medications and devices. And also, really, they’re looking at digital health as a multibillion-dollar potential opportunity for them as a company. So I think it cuts across all of those.
Charles Rhyee : Got it. And sorry, just one clarification from my earlier question the $61 million is just in the B2B business, right? So we would layer on top of any remaining B2C revenue.
Rick Anderson : Correct.
Operator: And our next question will come from Rahul Rakhit with LifeSci Capital.
