Core Viewpoint - Butterfly Network, Inc. (BFLY) has experienced significant selling pressure, resulting in a 34.5% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating potential for recovery [1]. Group 1: Technical Analysis - The stock is currently in oversold territory, with a Relative Strength Index (RSI) reading of 29.36, suggesting a possible trend reversal [5]. - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating an oversold condition [2][3]. Group 2: Fundamental Analysis - Analysts have raised earnings estimates for BFLY by 4.6% over the last 30 days, which is a positive sign for potential price appreciation [6]. - BFLY holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the outlook for a turnaround [7].

NEW YORK, March 25, 2025 /PRNewswire/ -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating whether certain officers and directors of Butterfly Network, Inc. (NYSE: BFLY) breached their fiduciary duties to shareholders.  According to a federal securities lawsuit, Insiders at Butterfly Network caused the company to misrepresent or fail to disclose that (i) Butterfly had overstated its post-Merger business and financial prospects; (ii) notwithstanding the ongoing COVID-19 pandemic, Butterfly ...

Financial Data and Key Metrics Changes - In 2024, Butterfly Network reported revenue of $82.1 million, representing a 25% increase year-over-year, while adjusted EBITDA loss improved by 42% to $38.9 million [9][43][49] - The fourth quarter of 2024 saw revenue of $22.4 million, the highest quarterly result in the company's history, marking a 35% increase compared to the prior year [38][39] - Gross profit for Q4 2024 was $13.7 million, a 45% increase from the prior year, with gross profit margin rising to 61% from 57% [42] Business Line Data and Key Metrics Changes - Product revenue in Q4 2024 was $14.7 million, up 45% year-over-year, driven by higher average selling prices and volume [40] - Software and other services revenue reached $7.6 million in Q4 2024, a 20% increase compared to the prior year, although the mix decreased by approximately four percentage points [40] Market Data and Key Metrics Changes - U.S. revenue in Q4 2024 was $14.5 million, a 32% increase year-over-year, while international revenue increased by 19% to $5.5 million [39] - The launch of the iQ3 device accounted for 50% of overall sales in units and 58% of probe revenue in 2024 [13] Company Strategy and Development Direction - Butterfly Network aims to expand its digital ecosystem and enhance accessibility to ultrasound technology, targeting a vision where every healthcare provider has a personal imaging device [10][11] - The company is focusing on scaling its core POCUS business and expanding into new markets, including home care and veterinary applications [22][23][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue target of $96 million to $100 million for 2025, representing approximately 20% growth, while maintaining fiscal discipline [49] - The company is optimistic about the potential of its HomeCare and Octiv businesses, which are expected to contribute significantly to future revenue [66][68] Other Important Information - Butterfly Network raised $81.7 million from a follow-on offering in January 2025, providing a bridge to cash flow independence [48] - The company has signed 21 partners in its Butterfly Garden initiative, with six expected to go commercial in 2025 [24] Q&A Session Summary Question: Update on confidence level for $500 million revenue target - Management is bullish about growth initiatives and believes they are on track to achieve the long-term revenue target [62][64] Question: Steps required to transition HomeCare from pilot to revenue - The transition involves training on-site personnel and utilizing telemedicine for scalability, with a 90-day process for training [75][79] Question: Update on wearable technology development - The wearable is in development, with a focus on building market demand before launching the product [88][90] Question: Details on HomeCare pilot and patient involvement - 18 nurses were trained across two facilities, with a pilot designed for 200 patients, and no readmissions reported so far [92][95] Question: Hardware developments and iQ station update - The company is actively working on next-generation hardware and the iQ station, which will expand into the lower-end cart business [97][100]

Financial Performance - Total revenue for the years ended December 31, 2024, and 2023 was $82.1 million and $65.9 million, respectively, representing a year-over-year increase of approximately 24.5%[24] - Net losses for the same periods were $72.5 million in 2024 and $133.7 million in 2023, indicating a reduction in losses of approximately 45.7%[24] - The company incurred net losses of $168.7 million, $133.7 million, and $72.5 million for the years ended December 31, 2022, 2023, and 2024, respectively, with an accumulated deficit of $802.1 million as of December 31, 2024[126] - Approximately 23%, 21%, and 30% of the company's total revenue was generated from international customers for the years ended December 31, 2024, 2023, and 2022, respectively[137] - The company anticipates continuing to incur significant losses for at least the next several years as it seeks to commercialize existing products and develop new offerings[124] Product Development and Market Strategy - The Butterfly iQ3 device, launched in February 2024, has shown impressive market uptake, contributing to increased penetration in the healthcare market[37] - Butterfly's Ultrasound-on-Chip™ technology allows for whole-body imaging on a single handheld probe, with the Butterfly iQ+ priced at approximately $2,700 and the iQ3 at approximately $3,900, making them competitive in the market[45] - The company estimates a potential new market exceeding $100 billion, targeting over 40 million healthcare practitioners globally[36] - The Butterfly HomeCare Services Business was introduced in March 2024, aiming to support chronic condition management outside of hospitals[41] - The company has launched three products: Butterfly iQ in 2018, Butterfly iQ+ in 2020, and Butterfly iQ3 in 2024, focusing on ultrasound imaging solutions[126] Market Penetration and Adoption - The company has over 145,000 unique Butterfly users to date, reflecting significant adoption of its technology[44] - Butterfly's devices are currently utilized in over 30 countries and in over 70 low-resource settings worldwide[25] - The company has sold devices to most of the largest 100 U.S. healthcare systems, indicating strong market penetration[69] - Butterfly has distributed thousands of devices in conflict zones like Ukraine, Gaza, and Israel through over 40 global health partnerships, supporting frontline medics[40] Technology and Innovation - The company is focused on leveraging AI integration to enhance ease of use and accelerate the adoption of handheld ultrasound technology[34] - Butterfly's semiconductor technology allows for whole-body scans, differentiating it from competitors relying on traditional piezoelectric crystals[77] - The company plans to enhance its software capabilities and develop new applications leveraging AI for improved clinical procedures[70] - The Auto B-Line Counter, launched in 2023, has been validated for use in cattle, potentially reducing antibiotic use in livestock[61] Regulatory and Compliance Challenges - The company is subject to extensive regulatory requirements from the FDA and other agencies for its medical devices, classified as Class II devices[105] - Regulatory compliance is critical, with the company needing to maintain marketing authorization for its products across various jurisdictions, which may have different requirements[115] - The company must comply with U.S. federal healthcare laws related to reimbursement claims submitted by customers using its products[111] - The company is subject to extensive government regulation, which could restrict the development, marketing, sale, and distribution of its products, potentially incurring significant costs[172] Supply Chain and Manufacturing - Butterfly devices are manufactured using custom-made components, including a key ultrasound transducer module produced in Taiwan and assembled in Thailand[82] - The company maintains significant inventory of critical components to mitigate supply chain risks associated with single-source suppliers[83] - The company relies on a single supplier, TSMC, for semiconductor components, which poses risks if TSMC fails to meet obligations[146] - The company has entered into a Foundry Service Agreement with TSMC, committing to minimum purchase volumes that could adversely affect cash flows[147] Intellectual Property and Licensing - As of February 13, 2025, Butterfly owns approximately 620 issued patents and pending patent applications, with expiration dates ranging from 2030 to 2045[96] - The company licenses wafer bonding technology for ultrasound applications from Stanford on a non-exclusive basis, which is critical for product sales[206] - The company has licensed parts of its Ultrasound on a Chip™ technology to Forest Neurotech in 2023, indicating ongoing strategic licensing efforts[209] - The company faces potential disputes over intellectual property rights, which could impact its ability to develop and commercialize products[213] Employee and Organizational Structure - As of January 31, 2025, Butterfly employed approximately 190 people, with 165 located in the United States[79] - Butterfly offers a competitive total rewards package including market-competitive base salaries, annual target cash bonuses, and long-term equity incentives[80] - Employees receive 100% coverage for medical, dental, and vision insurance, along with an employer-funded health savings account[81] Risks and Challenges - The company faces competition from established manufacturers of traditional ultrasound devices, which may impact its market acceptance and revenue generation[132] - The healthcare market is characterized by rapid technological evolution and intense competition, which may further disrupt the industry[163] - Unfavorable global economic conditions, including inflation and interest rates, could weaken demand for the company's products and impact its ability to raise capital[167] - The company faces risks related to compliance with the Foreign Corrupt Practices Act (FCPA) and other anti-bribery laws, which could result in significant penalties and operational disruptions[170]

Butterfly Network, Inc. (NYSE:BFLY) Q4 2024 Results Conference Call February 28, 2025 8:00 AM ET Company Participants Heather Getz - Chief Financial & Operations Officer Joseph DeVivo - Chairman Chief Executive Officer Conference Call Participants Josh Jennings - TD Cowen Benjamin Haynor - Lake Street Capital Suraj Kalia - Oppenheimer & Company Operator Good morning, and welcome to the Butterfly Network Fourth Quarter and Full Year 2024 Earnings Call. All participants will be in listen-only mode. [Operator ...

Preliminary Results Announcement - Butterfly Network, Inc. announced preliminary results for the fourth quarter ended December 31, 2024[3] - The press release detailing the preliminary results was dated January 8, 2025[5] Press Release Details - The press release is incorporated by reference as Exhibit 99.1[3] - The press release is not subject to the liabilities of Section 18 of the Exchange Act[4] - The press release is not incorporated by reference in any filing under the Securities Act or the Exchange Act unless expressly set forth by specific reference[4] Regulatory Information - The information in Item 2.02 is not deemed "filed" for purposes of Section 18 of the Exchange Act[4] Report Filing and Signatory - The report was signed by Heather C. Getz, CPA, Executive Vice President and Chief Financial & Operations Officer[8] - The report was filed on January 8, 2025[8] Company Contact Information - The company's principal executive offices are located at 1600 District Avenue, Burlington, Massachusetts 01803[1] - The company's telephone number is (781) 557-4800[1]

Company Overview - Butterfly Network, Inc. (BFLY) is expected to report a year-over-year increase in earnings due to higher revenues for the quarter ended December 2024 [1] - The earnings report is anticipated to be released on February 28, 2025, and could influence the stock price depending on whether the results meet or exceed expectations [2] Earnings Estimates - The consensus estimate indicates a quarterly loss of $0.10 per share, reflecting a year-over-year change of +52.4% [3] - Revenues are projected to be $22.31 million, which is a 35.1% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - The Most Accurate Estimate for Butterfly Network is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +10% [10] Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8] - However, Butterfly Network currently holds a Zacks Rank of 4 (Sell), complicating the prediction of an earnings beat [11] Historical Performance - In the last reported quarter, Butterfly Network was expected to post a loss of $0.10 per share but actually reported a loss of $0.08, resulting in a surprise of +20% [12] - Over the last four quarters, the company has beaten consensus EPS estimates three times [13] Industry Comparison - Health Catalyst (HCAT), another player in the Zacks Medical Info Systems industry, is expected to post earnings of $0.11 per share for the same quarter, indicating a year-over-year change of +450% [17] - Health Catalyst's revenues are expected to be $79.83 million, up 6.3% from the previous year [17] - Despite a recent downward revision of 18.8% in the consensus EPS estimate for Health Catalyst, it has an Earnings ESP of -19.05% and a Zacks Rank of 3 (Hold) [18]

Industry Overview - The medical info systems industry is experiencing significant growth driven by the increasing demand for contactless services, which accelerated during the pandemic and continues to thrive in the post-pandemic era [1][7] - The industry focuses on providing healthcare information systems that enable secure access to real-time clinical, administrative, and financial data, emphasizing patient satisfaction, data security, and cost control [3] AI Integration - The medical sector is a major adopter of artificial intelligence (AI), utilizing it for drug synthesis, precise measurement, and faster diagnosis [4] - AI applications in medical imaging have shown success in detecting abnormalities that are difficult for human eyes to identify, such as classifying skin cancer and diagnosing diabetic retinopathy [6] Growth Segments - Telehealth and remote patient monitoring are rapidly growing segments within the medical information systems space, indicating a sustained demand for contactless services [7] - The Zacks-defined Medical Info Systems Industry ranks in the top 14% of Zacks Industry Rank, suggesting strong performance expectations over the next three to six months [7] Investment Opportunities - Five medical info system stocks are highlighted as having strong potential for 2025, including Inspire Medical Systems Inc. (INSP), Omnicell Inc. (OMCL), Talkspace Inc. (TALK), Butterfly Network Inc. (BFLY), and Clover Health Investments Corp. (CLOV) [2][8] - These stocks have shown positive earnings estimate revisions, with each carrying a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [8] Company Profiles - **Inspire Medical Systems Inc. (INSP)**: Focuses on innovative solutions for obstructive sleep apnea, with expected revenue and earnings growth rates of 19.1% and 52.6%, respectively, for 2025 [10][11] - **Omnicell Inc. (OMCL)**: Develops automation solutions for medication processes, with expected revenue and earnings growth rates of 3.3% and 6%, respectively, for 2025 [12][13] - **Talkspace Inc. (TALK)**: A virtual behavioral healthcare company with expected revenue and earnings growth rates of 23.4% and over 100%, respectively, for 2025 [14][16] - **Butterfly Network Inc. (BFLY)**: Specializes in ultrasound imaging solutions, with expected revenue and earnings growth rates of 17.9% and 5.7%, respectively, for 2025 [17][18] - **Clover Health Investments Corp. (CLOV)**: Provides Medicare Advantage plans and a cloud-based platform for chronic disease management, with expected revenue and earnings growth rates of 11.2% and 41.7%, respectively, for 2025 [19][20]

Financial Data and Key Metrics Changes - Butterfly Network reported Q3 2024 revenue of $20.6 million, a 33% increase year-over-year, marking the highest third-quarter result in the company's history [16][22] - Gross profit for Q3 2024 was $12.2 million, a 30% increase compared to $9.4 million in Q3 2023, with a gross margin percentage of 59.5% [19] - Adjusted EBITDA loss improved to $8.4 million from a loss of $12.5 million in the same period last year, reflecting higher revenue and cost efficiencies [20] Business Line Data and Key Metrics Changes - Product revenue reached $13.5 million, a 55% increase year-over-year, driven by higher average selling prices and volume across all channels [17] - Software and other services revenue was $7 million, up 5% year-over-year, but the mix decreased to 34% of total revenue, down approximately 9 percentage points from Q3 2023 [17][18] - Total annual recurring revenue (ARR) grew slightly, with enterprise software subscription ARR increasing by 19%, now representing 46% of total ARR [18] Market Data and Key Metrics Changes - U.S. revenue was $13.1 million, a 27% increase year-over-year, driven by higher average selling prices and strong demand [16] - International revenue increased by 36% to $5.2 million, supported by higher probe volume and geographic expansion [16] Company Strategy and Development Direction - The company is focused on four strategic pillars: accelerating growth in core business, investing in R&D for tech leadership, expanding into new markets, and executing efficiently to achieve double-digit growth and cash flow breakeven by 2027 [5][6] - Butterfly is developing the iQ Station, which aims to enhance in-facility imaging and workflow, leveraging advancements in semiconductor technology [26][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a strong finish to 2024, raising revenue guidance to $79 million to $81 million, reflecting about 20% growth [22] - The company anticipates at least 15% to 20% top-line growth in 2025, with plans to close on non-dilutive capital to support further investments [23] Other Important Information - The company is forming a subsidiary called Octiv to commercialize its semiconductor technology in non-competitive sectors, which could provide a significant revenue stream [34][35] - Butterfly HomeCare is set to pilot virtual chronic care management services aimed at reducing hospital readmissions, potentially creating a substantial new revenue stream [31][75] Q&A Session Summary Question: Can you break down the 23% units and 10% price increase between U.S. and international? - Management indicated that the increase was roughly half and half, with most price increases coming from the U.S. [39] Question: How does the penetration of iQ3 compare to the previous generation? - The iQ3 mix was just over 50% for the quarter, with over 80% domestically [42] Question: Can you elaborate on the harmonics and P5 technology? - Management explained that harmonics require increased mechanical pressure, which is achieved through advanced semiconductor technology, allowing for higher quality imaging [43][45] Question: What are the expectations for Q4 revenue growth? - Management expects around 25% growth for Q4, emphasizing that they build in some conservatism in their guidance [52][53] Question: Can you provide details on the U.S. iQ3 launch and pipeline? - All sales channels are performing well, with a strong pipeline being built, particularly in hospitals [56][59] Question: What are the next steps regarding the EU's RoHS update? - Management discussed the process for reactivating the RoHS exemption and expressed optimism about the EU's receptiveness to their innovative technology [61][65] Question: Can you explain the economics of the Octiv subsidiary? - The subsidiary will focus on licensing and developing technology for various industries, with a potential for significant revenue generation [80]

Group 1 - Butterfly Network, Inc. reported a quarterly loss of $0.08 per share, better than the Zacks Consensus Estimate of a loss of $0.10, and an improvement from a loss of $0.13 per share a year ago, representing an earnings surprise of 20% [1] - The company posted revenues of $20.56 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 7.54%, and showing an increase from $15.42 million in the same quarter last year [2] - Butterfly Network shares have increased approximately 64.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 19.6% [3] Group 2 - The earnings outlook for Butterfly Network is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.10 on revenues of $21.01 million, and for the current fiscal year at -$0.37 on revenues of $79.27 million [7] - The Medical Info Systems industry, to which Butterfly Network belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]