Financial Data and Key Metrics Changes - For Q4 2022, revenue was $19 million, consistent with guidance and a 17% growth year-over-year [64] - Adjusted EBITDA loss improved to $29.3 million from $35.6 million in Q4 2021, driven by increased adjusted gross margin and cost reduction initiatives [44][66] - Adjusted gross profit was $10.3 million, with a margin of 54%, up from 40% in Q4 2021, attributed to a higher proportion of subscription revenues and improved manufacturing productivity [65] Business Line Data and Key Metrics Changes - Product revenue decreased by 12% to $12.7 million due to lower volumes in health systems and e-commerce, partially offset by higher global health volume and average selling prices [64] - Software and services revenue grew by almost 30% to $6.3 million, representing 33% of total revenue, driven by an increased installed base and software renewals [79] Market Data and Key Metrics Changes - The company is focusing on large health systems and hospitals, restructuring its commercial team to enhance efficiency and impact [13][66] - International expansion efforts included partnerships in new markets such as the UAE, India, Israel, and South Africa, unlocking millions of potential customers [39] Company Strategy and Development Direction - The company aims to democratize healthcare by making medical imaging accessible, with a focus on enterprise-wide deployments in health systems [32][34] - The strategy includes leveraging the Butterfly Blueprint software as a "Trojan horse" to facilitate device adoption across health systems [72] - Future plans involve expanding into home use for patient self-scanning and chronic disease monitoring, with ongoing regulatory discussions [61][95] Management's Comments on Operating Environment and Future Outlook - Management noted external resource constraints affecting sales cycles but expects these to alleviate over the year, allowing for improved performance [81] - The company anticipates full-year revenue growth in the high teens to low 20s range, with stronger performance expected in the second half of the year [66] Other Important Information - The company has a strong cash position of $242 million as of December 31, 2022, with a reduced monthly cash burn of $10 million [80] - A search for a full-time CEO is underway, with a focus on finding a leader who can inspire the team and drive the commercial strategy [7][33] Q&A Session Summary Question: What is the pathway for Butterfly iQ device deployments in Blueprint customer accounts? - The deployment of Blueprint allows for entry into large health systems, facilitating the eventual purchase and deployment of Butterfly devices across departments [88][89] Question: What is the current status of the U.S. sales force and enterprise channel leadership? - New commercial leadership has been brought in to focus on U.S. health systems while also finding distribution partners for out-of-hospital settings [91] Question: How is the company progressing towards home imaging and chronic disease management? - The company is working on use cases to ensure regulatory comfort for self-scanning and is making significant progress in image quality and home use capabilities [95][96]

Financial Performance - Total revenue remained flat year-over-year at $19.0 million in Q4 2022[13] - Product revenue decreased by 12% in Q4 2022[13] - Subscription revenue increased by 38% in Q4 2022[13] - Gross profit was $9.6 million with a gross margin of 50.3% in Q4 2022[14] - Adjusted gross profit was $10.3 million with an adjusted gross margin of 54.5% in Q4 2022[14] - Adjusted EBITDA loss was ($29.3) million in Q4 2022[14] - Cash, cash equivalents, and marketable securities totaled $237.8 million[14] Future Outlook - The company anticipates revenue growth in the high teens to low 20 percent range for full year 2023[17] - The company expects an adjusted EBITDA loss between ($95) million and ($85) million for full year 2023[17] Strategic Initiatives - Butterfly aims to democratize healthcare by making medical imaging accessible to everyone[3] - The company is focused on expanding its solution to home healthcare, health systems, international markets, and veterinary medicine[5, 10, 11] - Butterfly is deploying its enterprise platform at scale across key reference sites[9]

1 Q3 2022 Earnings Call November 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," "pr ...

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)