Revenue and Growth - Total revenue for the three months ended September 30, 2024, was $21.487 million, representing a 31.8% increase compared to $15.421 million for the same period in 2023[83]. - Units fulfilled increased by 1,249 units, or 36.6%, for the three months ended September 30, 2024, compared to the same period in 2023, with significant growth in international distributor volume[81]. - Product revenue increased by $4.8 million, or 54.7%, for the three months ended September 30, 2024 compared to the same period in 2023, driven by higher sales across nearly all channels and increased international probe sales[97]. - Software and other services revenue rose by $0.4 million, or 5.3%, for the three months ended September 30, 2024, primarily due to higher enterprise software revenue and increased licensing revenue[99]. - Product revenue increased by $9.6 million, or 32.1%, for the nine months ended September 30, 2024, with a notable impact from the iQ3 probe's higher selling price[107]. Expenses and Profitability - Research and development expenses for the three months ended September 30, 2024, were $8.844 million, accounting for 43.0% of total revenue[95]. - The gross profit margin for the three months ended September 30, 2024, was 59.5%, compared to 60.8% for the same period in 2023[95]. - Loss from operations for the three months ended September 30, 2024, was $(17.246) million, representing an 83.9% loss margin[95]. - Research and development expenses decreased by $3.3 million, or 27.1%, for the three months ended September 30, 2024, attributed to reductions in personnel costs and efficiencies[101]. - Sales and marketing expenses increased by $0.6 million, or 6.6%, for the three months ended September 30, 2024, driven by higher sales commissions[102]. - General and administrative expenses decreased by $2.2 million, or 19.1%, for the three months ended September 30, 2024, primarily due to reductions in stock-based compensation and professional service fees[103]. - Research and development expenses decreased by $15.4 million, or 34.8%, for the nine months ended September 30, 2024, mainly due to personnel cost reductions[110]. - Sales and marketing expenses increased by $0.9 million, or 3.3%, for the nine months ended September 30, 2024, primarily related to marketing expenses for new product launches[111]. Cash Flow and Financial Position - The company reduced its annual cash requirements by approximately $180 million, bringing it to less than $50 million annually, with cash expected to last into 2027[78]. - As of September 30, 2024, the company utilized $8.3 million of cash and cash equivalents, with a remaining balance of $93.8 million[117]. - Net cash used in operating activities decreased by $47.1 million, or 55.0%, for the nine months ended September 30, 2024, compared to the same period in 2023[122]. - The decrease in net cash used in operating activities was primarily driven by a reduction of $36.9 million in net loss adjusted for non-cash items and $10.2 million in net working capital cash usage[122]. - Fixed office lease payment obligations totaled $28.9 million as of September 30, 2024, with $3.6 million due within the next 12 months[119]. - Net cash provided by investing activities decreased by $75.2 million for the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to the sale of marketable securities in 2023[123]. - Net cash provided by financing activities decreased by $0.2 million for the nine months ended September 30, 2024, with no significant financing activities during this period[125]. - The company had restricted cash of $4.0 million to secure a letter of credit for one of its leases[118]. - Cash used for changes in accounts receivable increased by $8.9 million, impacting overall cash flow[122]. - The company expects to pay approximately 20% of its inventory supply agreements obligations using vendor advances[119]. - The company had no off-balance sheet arrangements as of September 30, 2024[120]. Future Outlook - The company expects to continue investing in product and software development, clinical, and regulatory capabilities to drive future growth[90]. - The company anticipates a shift in revenue mix towards software and other services as device adoption increases, although the mix may remain flat or decrease in 2024 due to the launch of the iQ3 device[86]. - The company expects to continue incurring losses and negative cash flows for a few years while commercializing existing and new products[115]. - The company plans to seek non-dilutive capital in the form of licensing, grants, or debt before potentially raising equity capital to reach profitability[78].

Revenue Growth and Performance - Delivered quarterly revenue of $20.6 million, representing 33% YoY growth[1] - Product revenue increased 55% YoY to $13.5 million, driven by a 37% increase in units fulfilled[10] - Software and other services revenue increased 5% YoY to $7.0 million[10] - Total revenue for Q3 2024 increased to $20.56 million, up 33.3% from $15.42 million in Q3 2023[22] - Raised full-year revenue guidance to $79 million to $81 million, representing over 20% growth[14] Profitability and Gross Margin - Gross profit increased to $12.2 million, with gross margin decreasing to 59.5% from 60.8%[11] - Gross profit for Q3 2024 rose to $12.23 million, a 30.4% increase from $9.38 million in Q3 2023[22] - Adjusted gross margin for Q3 2024 was 60.0%, slightly down from 60.8% in Q3 2023[25] - Adjusted gross profit for Q3 2024 was $12.33 million, up 31.4% from $9.38 million in Q3 2023[25] Net Loss and Operating Expenses - Reduced Q3 net loss by 38% and net cash used in operations by 50%[1] - Net loss improved to $16.9 million from $27.4 million in the prior year period[13] - Net loss for Q3 2024 improved to $16.92 million, down 38.2% from $27.37 million in Q3 2023[22] - Operating expenses decreased 30% YoY to $29.5 million[12] - Total operating expenses for Q3 2024 were $29.48 million, a 29.7% reduction from $41.95 million in Q3 2023[22] - Research and development expenses for Q3 2024 decreased to $8.84 million, down 27.1% from $12.13 million in Q3 2023[22] - Net loss for Q3 2024 was $16.9 million, compared to $27.4 million in Q3 2023, showing a 38.2% improvement[26] - Adjusted net loss for Q3 2024 was $(10.2) million, compared to $(14.6) million in Q3 2023, a 30.1% improvement[26] Cash Flow and Financial Position - Cash, cash equivalents, and restricted cash totaled $97.8 million as of September 30, 2024[14] - Cash and cash equivalents decreased to $93.76 million as of September 30, 2024, from $134.44 million at the end of 2023[23] - Net cash used in operating activities for the first nine months of 2024 was $38.59 million, a 55.0% improvement from $85.72 million in the same period of 2023[24] - Accounts receivable increased to $20.62 million as of September 30, 2024, up 53.7% from $13.42 million at the end of 2023[23] Adjusted Metrics and Non-GAAP Measures - Adjusted EBITDA for Q3 2024 was $(8.4) million, compared to $(12.5) million in Q3 2023, reflecting a 32.4% improvement[26] - Adjusted EPS for Q3 2024 was $(0.05), compared to $(0.07) in Q3 2023, indicating a 28.6% improvement[26] - Stock-based compensation for Q3 2024 was $4.4 million, compared to $6.8 million in Q3 2023, a 35.3% decrease[26] - Interest income for Q3 2024 was $(1.2) million, compared to $(1.9) million in Q3 2023, a 35.8% decrease[26] - Depreciation and amortization for Q3 2024 was $2.6 million, compared to $4.0 million in Q3 2023, a 35.0% decrease[26] - Weighted average shares used to compute adjusted EPS for Q3 2024 was 212.8 million, compared to 206.7 million in Q3 2023, a 2.9% increase[26] Market Expansion and Product Launches - Launched iQ3 in Europe and opened new markets in Indonesia, the Netherlands, and Belgium[1]

Group 1 - Butterfly Network, Inc. (BFLY) has shown a year-to-date performance increase of approximately 39.8%, significantly outperforming the Medical sector's average return of 11.7% [4] - The Zacks Consensus Estimate for BFLY's full-year earnings has risen by 11.9% over the past 90 days, indicating improving analyst sentiment and a positive earnings outlook [4] - Butterfly Network, Inc. currently holds a Zacks Rank of 2 (Buy), suggesting it has characteristics that may lead to outperformance in the market over the next one to three months [3] Group 2 - Butterfly Network, Inc. is part of the Medical Info Systems industry, which consists of 41 companies and is currently ranked 69 in the Zacks Industry Rank [6] - The Medical Info Systems industry has experienced a decline of about 10.6% year-to-date, indicating that BFLY is performing better than its industry peers [6] - In comparison, Brainsway Ltd. Sponsored ADR, another outperforming stock in the Medical sector, has increased by 17% year-to-date and has a Zacks Rank of 1 (Strong Buy) [5][7]

Core Viewpoint - Butterfly Network's shares surged 26.9% following the commercial launch of its third-generation handheld ultrasound system, Butterfly iQ3, in Europe, reflecting strong investor sentiment due to its successful uptake in the U.S. market after its February launch [1]. Product Launch and Features - The Butterfly iQ3 received EU MDR certification in March and is compliant with the Restriction of Hazardous Substances Directive, making it available in all European countries and the UK, with a prior launch in Canada during Q2 [2]. - The iQ3 is the most advanced portable ultrasound device from Butterfly Network, featuring the P4.3 chip with double the processing power of the previous iQ+ model, enhanced 3D imaging tools, and a more ergonomic design [3]. - The iQ3's higher selling price compared to iQ+ is expected to accelerate revenue growth [3]. Market Performance - Butterfly Network's shares have increased by 39.9% year-to-date, outperforming the industry decline of 13.5% and the S&P 500 Index's gain of 15.9% [4]. - The company reported a 16% top-line growth in Q2, driven by strong iQ3 uptake in the U.S. and additional sales from the Canadian launch, with 74% of total online orders being for iQ3 [6]. Sales and Adoption - In Q2, iQ3 sales accounted for 50% of total unit sales, with 75% of units sold in the U.S. [7]. - The company initiated a competitive device upgrade program, allowing customers to exchange old devices for the new iQ3, resulting in over a thousand probes upgraded in Q2 [6]. Technological Advancements - The iQ3 features advanced 3D capabilities, including iQ Slice and iQ Fan, which facilitate easier image capturing and improve clinical decision-making [7][8]. - The device's smaller and ergonomic design, with a 17% smaller probe face and 7% shorter size than iQ+, along with a stronger battery, enhances its appeal and usability [9]. Clinical Benefits - The iQ3 significantly improves echo image quality and includes a biplane mode for cannulation, beneficial for managing patients with challenging IV access [10].

Core Insights - The article highlights two stocks that have seen significant insider buying, indicating strong confidence from company executives in their future performance [2][6]. Group 1: Bill.com Holdings (BILL) - Bill.com Holdings is a cloud accounting and paperwork software provider for small- and medium-sized businesses, with its stock currently priced at $54.69, reflecting a 3.68% gain on the day, a 2.53% increase over the week, and a 23.18% rise in the past month [3][6]. - Recent insider purchases include CFO John Retting buying 21,124 shares for $1.04 million, Board member Brian Jacobs acquiring 25,000 shares for $1.34 million, and CEO Rene Lacerte purchasing 42,248 shares for $2.1 million [3][6]. Group 2: Butterfly Network (BFLY) - Butterfly Network focuses on democratizing medical imaging with its portable Ultrasound-on-Chip technology, currently trading at $1.51, which is up 26.89% on the day, 56.27% for the week, and 49.50% for the month [4][5]. - Larry Robbins, a Board member, recently bought 1,676,869 shares for over $1.68 million, demonstrating strong conviction in the company's future prospects [5][6].

Financial Data and Key Metrics Changes - Butterfly Network reported Q2 2024 revenue of $21.5 million, representing a 16% year-over-year growth, marking the highest quarterly revenue in the company's history [7][23] - Adjusted EBITDA loss improved to $8.1 million from a loss of $17 million in the same period last year, driven by higher revenue and cost reductions [27] - Gross profit was $12.6 million, a 15% increase compared to $10.9 million in Q2 2023, with gross margin percentage remaining relatively flat at 59% [26] Business Line Data and Key Metrics Changes - Product revenue was $14.6 million, up 19% year-over-year, primarily driven by higher average selling prices and volume, with approximately 50% of total volume being iQ3 [25] - Software and other services revenue was $6.9 million, a 10% increase year-over-year, but the mix decreased to 32% of total revenue [25][26] - Total annual recurring revenue (ARR) was flat year-over-year, with enterprise software subscription ARR growing 24% [26] Market Data and Key Metrics Changes - U.S. revenue was $14.8 million, a 3% increase year-over-year, but grew 25% when excluding large medical school deals from the previous year [24] - International revenue increased 57% year-over-year to $5.2 million, driven by higher probe volume, although average selling price was lower due to a higher mix of sales to distributors [24] Company Strategy and Development Direction - The company aims to accelerate growth in its core business, expand market accessibility, invest in R&D, and execute strategies to drive profitability [6] - Butterfly is focusing on building a sustainable revenue model through partnerships with medical schools and expanding its presence in international markets [13][20] - The company is developing an AI ecosystem through partnerships, enhancing its competitive position in the ultrasound market [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting broad-based revenue growth and strong clinical acceptance across multiple specialties [38] - The company anticipates continued double-digit growth in 2024 and beyond, with a focus on operational efficiencies and extending cash runway into 2027 [31][30] - Management noted the importance of AI in expanding ultrasound usage and improving patient care, particularly in low-resource settings [48] Other Important Information - Butterfly regained compliance with the New York Stock Exchange minimum bid price rule [30] - The company is actively working on overturning the exemption for hazardous substances in ultrasound devices in Europe, which could significantly impact the market [21][22] Q&A Session Summary Question: Insights on iQ3 launch success and international expectations - Management noted broad-based success in the U.S. with 75% of sales being iQ3, and expressed excitement about the upcoming launch in Europe [38][40] Question: Sales pipeline and revenue contributions from Butterfly Garden - Management indicated that the sales pipeline coverage is at a high level, providing confidence for future growth, with expectations for revenue contributions from Butterfly Garden partners to build in 2025 [42][45] Question: Clarification on volume and price metrics - Management clarified that the 37% volume growth excludes large grant-based deals from the previous year, demonstrating strong core demand for products [53][54] Question: iQ3 contribution metrics - Approximately 50% of total volume in the quarter was iQ3, with about 75% domestically [56]

Butterfly Network, Inc. (BFLY) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.10. This compares to loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this company would post a loss of $0.12 per share when it actually produced a loss of $0.07, delivering a surprise of 41.67%. Over the last four quarters, the company has s ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39292 Butterfly Network, Inc. (Exact name of registrant as specified in its charter) Delaware 84-4618156 (Stat ...

Exhibit 99.1 Butterfly Network Reports Second Quarter 2024 Financial Results Reports Record Quarterly Revenue Raises Full Year Adjusted EBITDA Guidance ● Delivered record quarterly Revenue of $21.5 million in Q2, representing 16% YoY growth ● Reduced Q2 Net Loss by 45% and Net Cash Used in Operations by 62% ● Successfully launched medical school Campus Essentials program ● Launched iQ3 in Canada and expanded into new markets in Southeast Asia ● Filed for revocation of the RoHS handheld piezoelectric crystal ...

UltraSight and Butterfly have partnered to increase patient access to cardiac care by enabling more healthcare professionals to perform cardiac ultrasound. Subject to regulatory approvals and authorizations, UltraSight aims to integrate and deploy its real-time AI guidance software on Butterfly's imaging platform and build the software for use with Butterfly's single-probe, whole-body handheld ultrasound system. "Joining the Butterfly Garden marks an important moment in our mission to revolutionize cardiac ...