Financial Data and Key Metrics - Revenue growth of 14% in Q1 2024, exceeding expectations, with full-year revenue guidance raised to $75-80 million, representing 15-20% growth [5][24] - Gross profit increased by 12% to $10.2 million in Q1 2024, with gross margin remaining relatively flat at 58% [18] - Adjusted EBITDA loss improved by $9.1 million to $13.2 million in Q1 2024, driven by higher revenue and cost reductions [23] - Cash and cash equivalents stood at $117 million as of March 31, 2024, with a cash runway extending into 2026 [16][138] Business Line Performance - Product revenue increased by 28% to $11.3 million in Q1 2024, driven by higher volume and average selling prices [142] - Software and services revenue decreased slightly to $6.4 million in Q1 2024, but enterprise software upsells grew 25% from Q4 2023 [11][12] - ScanLab contributed significantly to Q1 success, enhancing medical education and training with AI-guided tools [13][141] Market Performance - U.S. sales grew 19% to $12.2 million in Q1 2024, driven by increased volume and higher average selling prices [15] - International sales grew 14% to $4.2 million in Q1 2024, despite the absence of iQ3 and EU MDR certification [51] - iQ3 launch in the U.S. saw over 1,200 units sold, with half being new users and half trade-in upgrades [37] Strategic Direction and Industry Competition - The company is focusing on iQ3-driven growth, global expansion, and medical school adoption, with additional opportunities in the veterinary market [6][130] - iQ3 is positioned as a competitive product with superior image quality and cost advantages compared to cart-based systems [38][60] - The company is exploring non-dilutive financing options, such as grants and licensing deals, to extend its cash runway [2][45] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth, driven by iQ3 adoption and new product launches [52][134] - The company is optimistic about the European market, with iQ3 expected to gain approval and potentially benefit from the RoHS directive [22][29] - Management highlighted the potential of home care initiatives, with revenue opportunities expected to materialize in 2025 [75][102] Other Important Information - The company received a non-compliance notice from the NYSE due to its stock price falling below $1, but it plans to regain compliance through business execution [16][133] - Butterfly Garden and Powered by Butterfly programs are expected to generate meaningful revenue over the next five years [87][127] Q&A Session Summary Question: Adoption curve of iQ3 compared to previous products - The adoption curve for iQ3 is difficult to compare directly with previous products due to different market conditions and the simultaneous presence of iQ+ [66][73] Question: Revenue potential from home care initiatives - The company is focusing on service revenue and success-based models for home care, with potential revenue streams starting in 2025 [26][27] Question: Non-dilutive financing and path to profitability - The company is exploring non-dilutive financing options, such as licensing deals, to extend its cash runway and reach profitability by 2027 [101][131] Question: Key areas of uptake for iQ3 - Cardiology has shown strong uptake for iQ3, with cardiologists appreciating the high-quality imaging capabilities [106] Question: RoHS directive and its impact - The company is confident about the RoHS directive potentially banning lead-based handheld ultrasound devices in the EU by 2025, which would benefit Butterfly [29][109] Question: Revenue capture potential with Compass software - Hospitals using Butterfly probes and Compass software have seen significant revenue capture, with some achieving 60-80% reimbursement rates [96][120]

Critical Accounting Policies and Significant Judgments and Estimates The Company did not identify any significant recently issued accounting pronouncements that may potentially impact our financial position and results of operations. 23 Foreign Exchange Risk Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and pro ...

Butterfly Network Reports First Quarter 2024 Financial Results Achieves 14% Revenue Growth - Exceeding Expectations Raises Full Year Guidance BURLINGTON, Mass. & NEW YORK--(BUSINESS WIRE) -- Butterfly Network, Inc. (NYSE: BFLY) ("Butterfly" or the "Company"), a digital health company transforming care with handheld, whole-body ultrasound and intuitive software, today announced financial results for the first quarter ended March 31, 2024, and provided a business update. DeVivo continued, "Building on this pr ...

NEW YORK & BURLINGTON, Mass.--(BUSINESS WIRE)--Butterfly Network, Inc. (NYSE: BFLY) (“Butterfly”) a digital health company transforming care with handheld, whole-body ultrasound and intuitive software, hosted its first investor day under President, Chief Executive Officer and Chairman, Joseph DeVivo. The event featured presentations from members of Butterfly’s executive and senior leadership team, providing insights into the Company’s product, software and services portfolio within its core point-of-care ul ...

We have wholly-owned subsidiaries organized in Australia, Germany, the Netherlands, the United Kingdom and Taiwan. Our principal executive offices are located at 1600 District Avenue, Burlington, Massachusetts 01803 and our telephone number is (781) 557-4800. Table of Contents We believe our affordable holistic solution provides valuable clinical information and workflow efficiency that is attractive to any healthcare systems that seek to improve care at lower cost. These attributes also may allow the use o ...

Full Year&Q4 2023 Earnings Call Butterfly Network February 28, 2024 Add animation here 6 Forward Looking Statements This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Butterfly Network, Inc.'s (the "Company") actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future ...

Financial Data and Key Metrics Changes - Revenue for Q4 2023 was $16.5 million, down from $19 million in Q4 2022, primarily due to lower volume, partially offset by higher prices [10] - Total annual revenue for 2023 was $65.9 million, exceeding expectations of at least $64 million, with direct sale revenues growing 10% and 11% year-over-year in Q4 and full year respectively [17][21] - Adjusted EBITDA loss for Q4 2023 was $15.7 million, an improvement from a loss of $27.7 million in Q4 2022, driven by cost reductions [31] - Gross profit excluding a non-cash write-down was $9.4 million in Q4 2023, with a gross profit margin of 57%, up 210 basis points compared to Q4 2022 [110] Business Line Data and Key Metrics Changes - Product revenue was $10.2 million in Q4 2023, a decrease of 20% compared to Q4 2022, largely due to lower volume in e-commerce and international distribution [12] - Software and services revenue was $6.4 million in Q4 2023, flat compared to the prior year, with a mix of 39% of total revenue, an increase of approximately 5 percentage points year-over-year [27] - Total annual recurring revenue grew by 4%, led by a 35% increase in enterprise software, now representing 41% of total ARR [28] Market Data and Key Metrics Changes - U.S. sales totaled $11 million, slightly higher than the prior year, driven by increased average selling prices and higher revenue from software and subscriptions [11] - Total international sales declined by 24% year-over-year to $4.6 million, primarily due to the absence of large orders that occurred in 2022 [11] Company Strategy and Development Direction - The company aims for double-digit growth in 2024 while efficiently investing in technology and commercial teams [5] - Focus on expanding market opportunities through new product launches and partnerships, including the introduction of the iQ3 and AI solutions [6][7] - Plans to drive adoption in medical schools and expand into new international markets, particularly in Asia [64][69] Management's Comments on Operating Environment and Future Outlook - Management views 2023 as a transition year, with a solid path for growth established for 2024 and beyond [19] - The company has maintained a strong cash position, extending its cash runway into 2026 while continuing to invest in the business [22] - Management expects mid-single-digit growth in Q1 2024, with acceleration anticipated in the second half of the year as new sales resources ramp up [35] Other Important Information - The company has successfully launched the iQ3, which doubles processing power and enhances image quality, positioning it competitively in the market [23][41] - The company is actively pursuing regulatory approvals for its products in international markets, including the EU and Canada [49][65] Q&A Session Summary Question: Will iQ3 drive an acceleration in the replacement cycle within the customer base? - Management confirmed a trade-in path for health system partners and e-commerce customers to upgrade to iQ3 [57] Question: How is the direct sales team structured compared to last year? - The sales team has increased by 30% to 50%, with a focus on efficiency and capital use while ramping up sales efforts [58][80] Question: What is the timeline for quantifying iQ3's impact on sales? - Management anticipates having visibility on iQ3's performance by the end of Q2 2024, with a growing pipeline of opportunities [88][89]

Butterfly Network, Inc. (BFLY) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to loss of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -75%. A quarter ago, it was expected that this company would post a loss of $0.15 per share when it actually produced a loss of $0.13, delivering a surprise of 13.33%.Over the last four quarters, the company has su ...

Financial Performance - Total revenue for Q4 2023 was $16.5 million, down from $19.0 million in Q4 2022, with U.S. revenue at $10.9 million (down 3%) and international sales declining 24% to $4.6 million[13]. - Product revenue decreased by 20% year-over-year to $10.2 million, attributed to lower distributor orders and e-commerce volume[6]. - Gross loss for Q4 2023 was $12.5 million, with total gross margin decreasing to negative 75.9% from 50.3% in the prior year, primarily due to a $21.9 million write-down of excess inventory[14]. - Net loss for the year ended 2023 was $133.7 million, an improvement from a net loss of $168.7 million in 2022[16]. - Cash and cash equivalents at the end of Q4 2023 were $134.4 million, down from $162.6 million at the end of 2022[15]. - The net loss for Q4 2023 was $44.1 million, compared to a net loss of $33.7 million in the prior year[22]. - Adjusted EBITDA loss for Q4 2023 was $15.7 million, an improvement from a loss of $27.7 million in Q4 2022[24]. - Operating expenses decreased by 42% to $34.2 million from $58.6 million in the prior year period, attributed to workforce reductions and spending rationalization[23]. - Total operating expenses excluding stock-based compensation were $27.3 million, down 32% from $39.9 million in Q4 2022[33]. - Cash, cash equivalents, and restricted cash totaled $138.7 million as of December 31, 2023[34]. Product Development and Innovation - Butterfly launched its third-generation handheld ultrasound system, Butterfly iQ3™, which received FDA clearance ahead of schedule in January 2024[3]. - The company launched its second generation Butterfly iQ+ in 2020 and plans to release the third generation iQ3 in 2024, enhancing processing power and performance[38]. - Butterfly's proprietary Ultrasound-on-Chip™ technology and intelligent software are key to mass adoption of ultrasound for early detection and remote health management[38]. - The company signed 13 partners into its Butterfly Garden program, enhancing its ecosystem and driving growth[11]. Future Outlook - The company expects low double-digit revenue growth for the upcoming fiscal year[25]. - Upcoming Investor Day is scheduled for March 18, 2024, at the New York Stock Exchange to discuss growth initiatives[9]. - The company plans to host an Investor Day event on March 18, 2024, to showcase new ultrasound technology and co-developed products[26]. Financial Metrics and Reporting - Financial measures include adjusted gross profit, adjusted gross margin, and adjusted EBITDA, which are not prepared in accordance with GAAP[39]. - Adjusted gross profit and adjusted EBITDA are used to evaluate core operating results and financial planning, providing tools for investors to compare performance over periods[40]. - The company emphasizes that non-GAAP measures should be considered alongside GAAP measures for a comprehensive evaluation of performance[40]. - The financial statements are presented in thousands, indicating a focus on detailed financial reporting[43]. Market Reach and Recognition - Butterfly Network aims to democratize medical imaging, targeting the 4.7 billion people globally without access to ultrasound[38]. - Butterfly devices are commercially available in various regions, including parts of Africa, Asia, Europe, and the Americas[38]. - The company has received multiple accolades, including TIME's Best Inventions and CNBC Disruptor 50, highlighting its innovative technology[38]. Revenue Breakdown - Software and other services revenue remained flat at $6.4 million, with enterprise software growing by 35% year-over-year[6]. - Total revenue for Q4 2023 was $16.5 million, down 13% from $19.0 million in Q4 2022[19]. - Adjusted gross profit for Q4 2023 was $9.4 million, with an adjusted gross margin of 56.6%[19]. Forward-Looking Statements - Future updates on forward-looking statements will not be publicly released unless there are changes in expectations or circumstances[42].

NEW YORK & BURLINGTON, Mass.--(BUSINESS WIRE)--Butterfly Network, Inc. (NYSE: BFLY) (“Butterfly”) a digital health company transforming care with handheld, whole-body ultrasound and intuitive software, today announced that it will present and host one-on-one investor meetings at the TD Cowen 44th Annual Health Care Conference in Boston on March 5, 2024. Joseph DeVivo, President, Chief Executive Officer & Chairman, and Heather Getz, Executive Vice President & Chief Financial and Operations Officer will prese ...