Butterfly Network, Inc. (NYSE:BFLY) Q3 2022 Earnings Conference Call November 3, 2022 8:30 AM ET Company Participants Todd Fruchterman - President & Chief Executive Officer Heather Getz - Chief Financial Officer Conference Call Participants Josh Jennings - Cowen Neil Chatterji - B. Riley Operator Hello everyone, and thank you for joining the Butterfly Network Q3 2022 Earnings Call. My name is Darius and I'll be the operator for today. Before handing over to your host Heather Getz [Operator Instructions] I n ...

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 September 30, 2022 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 ...

Butterfly Network, Inc. (NYSE:BFLY) Q2 2022 Earnings Conference Call August 3, 2022 8:30 AM ET Company Participants Todd Fruchterman - President & Chief Executive Officer Heather Getz - Chief Financial Officer Conference Call Participants Josh Jennings - Cowen and Company * Operator Hello, and welcome to the Butterfly Network's Second Quarter 2022 Earnings Conference Call. My name is Alex. I'll be coordinating the call today. [Operator Instructions] I will now hand over to your host, Heather Getz, Chief Fin ...

1 Q2 2022 Earnings Call August 03, 2022 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 events. Words such as "expect," "estimate," "proj ...

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, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-----------------------------------------------------------------------------------------------------------|------------------------------------------------- ...

| --- | --- | --- | --- | |-----------------------|-------|-------|-------| | | | | | | | | | | | Q1 2022 Earnings Call | | | | | May 5, 2022 | | | | 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 ...

[Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This report contains forward-looking statements concerning the company's plans, strategies, and future financial performance - This report contains forward-looking statements concerning the company's plans, strategies, and future financial performance, based on management's current beliefs and assumptions[4](index=4&type=chunk) - Key areas covered by forward-looking statements include product commercialization, R&D success, regulatory approvals, market growth potential, and financial performance estimates[4](index=4&type=chunk) - The company identifies several risks and uncertainties that could cause actual results to differ, such as managing rapid growth, competition, pricing pressures, intellectual property protection, and the ongoing impact of the COVID-19 pandemic[4](index=4&type=chunk) [Part I: Financial Information](index=6&type=section&id=Part%20I%20Financial%20Information) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2022 financial statements reflect decreased assets and equity, a **$44.5 million** net loss, and **$54.2 million** cash used in operations [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2022, total assets decreased to **$535.4 million** due to reduced cash, with stockholders' equity declining to **$412.7 million** Condensed Consolidated Balance Sheet Data (Unaudited, in thousands) | Balance Sheet Item | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $359,901 | $422,841 | | Inventories | $48,354 | $36,243 | | Total current assets | $474,306 | $511,904 | | Total assets | $535,420 | $571,965 | | **Liabilities & Equity** | | | | Total current liabilities | $50,707 | $49,829 | | Total liabilities | $122,756 | $124,274 | | Total stockholders' equity | $412,664 | $447,691 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q1 2022 revenue increased to **$15.6 million**, but net loss significantly widened to **$44.5 million** due to reduced warrant liability gains and higher operating expenses Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share data) | Metric | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :--- | :--- | :--- | | Total revenue | $15,574 | $12,443 | | Gross profit | $8,342 | $6,416 | | Loss from operations | $(49,533) | $(53,748) | | Change in fair value of warrant liabilities | $5,163 | $54,112 | | Net loss | $(44,477) | $(690) | | Net loss per share, basic and diluted | $(0.22) | $(0.01) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2022 net cash used in operating activities was **$54.2 million**, leading to a **$58.2 million** net decrease in cash, ending with **$368.7 million** Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) | Cash Flow Activity | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(54,234) | $(63,427) | | Net cash used in investing activities | $(4,506) | $(528,197) | | Net cash provided by financing activities | $550 | $550,268 | | Net (decrease) increase in cash | $(58,190) | $(41,356) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, **$103.8 million** in inventory purchase commitments, and ongoing legal proceedings with unpredictable outcomes Disaggregation of Revenue (in thousands) | By Product Type | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Devices and accessories | $11,014 | $9,595 | | Subscription services | $4,560 | $2,848 | | **Total Revenue** | **$15,574** | **$12,443** | | **By Geographical Market** | **Q1 2022** | **Q1 2021** | | United States | $11,304 | $8,896 | | International | $4,270 | $3,547 | | **Total Revenue** | **$15,574** | **$12,443** | - As of March 31, 2022, the company had **$22.8 million** in remaining performance obligations, with **65%** expected to be recognized as revenue in the next twelve months[33](index=33&type=chunk) - The company has minimum inventory purchase commitments of **$103.8 million** as of March 31, 2022[61](index=61&type=chunk) - The company is defending against a class action lawsuit alleging false and misleading statements and a patent infringement lawsuit filed by Fujifilm Sonosite, Inc., for which the outcome or range of possible loss is currently unpredictable[67](index=67&type=chunk)[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes **25.2%** revenue growth to higher prices and SaaS subscriptions, with increased operating expenses and a **$40.0 million** Adjusted EBITDA loss, but believes current cash is sufficient for 12 months [Key Performance Metrics and Non-GAAP Measures](index=28&type=section&id=Key%20Performance%20Metrics%20and%20Non-GAAP%20Measures) Key performance indicators include **1.9%** increase in units fulfilled and **29.3%** subscription mix, with Adjusted Gross Margin at **56.3%** and Adjusted EBITDA loss widening to **$40.0 million** - Units fulfilled increased by **93 units**, or **1.9%**, in Q1 2022 compared to Q1 2021, driven by veterinary, distributor, and direct sales channels, partially offset by slowing e-commerce sales[82](index=82&type=chunk) - Subscription mix increased by **6.4 percentage points** to **29.3%** for Q1 2022, up from **22.9%** in Q1 2021, due to a higher volume of units fulfilled and increased subscription renewals[84](index=84&type=chunk) Non-GAAP Financial Measure Reconciliation (in thousands) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Adjusted Gross Profit** | | | | Gross profit (GAAP) | $8,342 | $6,416 | | Adjusted gross profit (Non-GAAP) | $8,768 | $5,945 | | Adjusted gross margin (Non-GAAP) | 56.3% | 47.8% | | **Adjusted EBITDA** | | | | Net loss (GAAP) | $(44,477) | $(690) | | Adjusted EBITDA (Non-GAAP) | $(39,964) | $(26,501) | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Q1 2022 total revenue grew **25.2%**, driven by **14.8%** product and **60.1%** subscription revenue, while R&D and S&M expenses significantly increased, and G&A decreased Revenue Change by Type (in thousands) | Revenue Type | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Product | $11,014 | $9,595 | $1,419 | 14.8% | | Subscription | $4,560 | $2,848 | $1,712 | 60.1% | | **Total revenue** | **$15,574** | **$12,443** | **$3,131** | **25.2%** | Operating Expense Changes (in thousands) | Expense Category | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Research and development | $23,623 | $15,716 | $7,907 | 50.3% | | Sales and marketing | $15,202 | $9,808 | $5,394 | 55.0% | | General and administrative | $19,050 | $34,640 | $(15,590) | (45.0)% | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Primary liquidity sources are operations and 2021 Business Combination proceeds, with **$359.9 million** cash as of March 31, 2022, deemed sufficient for 12 months, despite **$103.8 million** in purchase obligations - The company's cash and cash equivalents balance was **$359.9 million** as of March 31, 2022[120](index=120&type=chunk) - Management expects existing cash and cash flows will be sufficient to meet liquidity and capital requirements for at least the next 12 months[119](index=119&type=chunk) - As of March 31, 2022, the company had fixed purchase obligations of **$103.8 million**, with **$65.9 million** payable within 12 months[122](index=122&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces limited market risks, with minimal interest rate and foreign exchange exposure, and inflation has not had a material effect to date - Interest Rate Risk: The company does not have floating rate debt and does not expect cash flows to be significantly affected by changes in market interest rates[132](index=132&type=chunk) - Inflation Risk: Inflation has not had a material effect, but the company notes it may not be able to fully offset higher costs through price increases if inflationary pressures rise[133](index=133&type=chunk) - Foreign Exchange Risk: Risk is limited as the business operates primarily in the U.S. with transactions mainly in U.S. dollars[134](index=134&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[137](index=137&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[138](index=138&type=chunk) [Part II: Other Information](index=42&type=section&id=Part%20II%20Other%20Information) [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) A new patent infringement lawsuit was filed by Fujifilm Sonosite, Inc. on March 9, 2022, regarding iQ and iQ+ ultrasound products, with an unpredictable outcome - On March 9, 2022, Fujifilm Sonosite, Inc. filed a complaint against the company alleging that its iQ and iQ+ ultrasound products infringe on certain Fujifilm patents[139](index=139&type=chunk) - The company intends to vigorously defend against the lawsuit, which seeks unspecified damages, an injunction, and litigation costs[139](index=139&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K - The company states there have been no material changes to the risk factors described in its 2021 Annual Report on Form 10-K[141](index=141&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales or repurchases of equity securities occurred during the three months ended March 31, 2022 - The company did not repurchase any of its equity securities during the three months ended March 31, 2022[142](index=142&type=chunk) [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable - Not applicable[142](index=142&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[142](index=142&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) Not applicable - Not applicable[142](index=142&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including executive agreements and required SOX certifications - Lists exhibits filed with the report, including executive employment agreements and required SOX certifications[144](index=144&type=chunk)

Butterfly Network, Inc. (NYSE:BFLY) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET Company Participants Agnes Lee - Vice President, Investor Relations Todd Fruchterman - President & Chief Executive Officer Conference Call Participants Josh Jennings - Cowen Operator Hello, and welcome to Butterfly Network's First Quarter 2022 Earnings Call. My name is Alex and I'll be coordinating the call today. [Operator Instructions] I will now hand over to your host, Agnes Lee, Vice President of Investor Relatio ...

Q4 2021 Earnings Call February 28, 2022 Legal Statements 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 events. Words such as "expect," ...

Butterfly Network, Inc. (NYSE:BFLY) Q4 2021 Earnings Conference Call February 28, 2022 8:30 AM ET Company Participants Agnes Lee - VP, IR Todd Fruchterman - President, CEO & Director Stephanie Fielding - CFO Conference Call Participants Joshua Jennings - Cowen and Company Matthew Taylor - UBS Operator Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the Butterfly Network Q4 2021 Earnings Confere ...