Butterfly Network(BFLY) - 2025 Q1 - Quarterly Report

Part I - Financial Information Item 1. Financial Statements This section presents the unaudited condensed consolidated financial statements for Q1 2025, detailing financial position, performance, and cash flows Condensed Consolidated Balance Sheets Total assets increased significantly by March 31, 2025, driven by cash from a share offering, while liabilities decreased and equity grew Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $155,212 | $88,775 | | Total current assets | $257,383 | $192,613 | | Total assets | $318,412 | $256,082 | | Liabilities & Equity | | | | Total current liabilities | $42,476 | $48,215 | | Total liabilities | $78,716 | $87,250 | | Total stockholders' equity | $239,696 | $168,832 | Condensed Consolidated Statements of Operations and Comprehensive Loss Total revenue grew 20.2% year-over-year to $21.2 million, while the company significantly narrowed its net loss for Q1 2025 Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $21,225 | $17,656 | | Gross Profit | $13,380 | $10,276 | | Loss from Operations | $(18,468) | $(22,621) | | Net Loss | $(13,967) | $(21,761) | | Net Loss Per Share | $(0.06) | $(0.10) | Condensed Consolidated Statements of Changes in Stockholders' Equity Total stockholders' equity significantly increased by March 31, 2025, primarily driven by net proceeds from a public share offering - A public share offering in Q1 2025 resulted in net proceeds of $81.1 million, significantly boosting stockholders' equity[19] Condensed Consolidated Statements of Cash Flows Net cash used in operating activities improved, while financing activities generated substantial cash, resulting in a net increase in cash for the quarter Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(11,677) | $(20,667) | | Net cash used in investing activities | $(353) | $(1,138) | | Net cash provided by financing activities | $78,467 | $— | | Net increase (decrease) in cash | $66,437 | $(21,805) | Notes to Condensed Consolidated Financial Statements The notes provide detailed explanations of accounting policies and financial statement line items, including revenue disaggregation, share offering details, and legal proceedings Disaggregated Revenue (in thousands) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | By product type: | | | | Hardware | $14,164 | $11,291 | | Software and other services | $7,061 | $6,365 | | By geographical market: | | | | United States | $17,039 | $13,737 | | International | $4,186 | $3,919 | | Total Revenue | $21,225 | $17,656 | - On January 31, 2025, the Company issued 27,600,000 shares of Class A common stock in a public offering, receiving net proceeds of $81.1 million after deducting underwriting discounts and other expenses[54] - The company is defending against a putative class action lawsuit (Rose v. Butterfly) and two stockholder derivative actions (Koenig v. Fruchterman and Bhavsar v. Fruchterman), but is unable to predict the outcome or estimate a range of possible loss at this time[71][72] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 financial performance, highlighting revenue growth, reduced net loss, significant cash requirement reductions, and successful capital raising - The company has taken significant actions to reduce its annual cash requirements by approximately $180 million, to less than $50 million annually[77] - In January 2025, the company raised $81.1 million in net proceeds from a public offering of 27.6 million shares of Class A common stock[77][106] Revenue and Expense Changes (Q1 2025 vs Q1 2024) | Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $21,225 | $17,656 | 20.2% | | Gross Profit | $13,380 | $10,276 | 30.2% | | R&D Expense | $9,924 | $10,720 | (7.4)% | | Sales & Marketing Expense | $11,620 | $10,378 | 12.0% | | G&A Expense | $9,600 | $10,442 | (8.1)% | - Net cash used in operating activities decreased by $9.0 million (43.5%) year-over-year, driven by a lower net loss and improved working capital management[112] Item 3. Quantitative and Qualitative Disclosures About Market Risk The company identifies interest rate, inflation, and foreign exchange risks as primary market exposures, which management currently deems immaterial due to conservative cash management and USD-denominated transactions - The company's primary market risks are identified as interest rate risk, inflation risk, and foreign exchange risk[118][119][121] - Management does not believe that these risks have had a material effect on the business, financial condition, or results of operations[118][119][121] - Cash and cash equivalents are held in bank deposits and money market accounts, and a sudden 100 basis point change in interest rates is not expected to have a significant effect[118] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the Chief Executive Officer and Chief Financial & Operations Officer, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[124] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[125] Part II - Other Information Item 1. Legal Proceedings The company is subject to legal proceedings in the ordinary course of business, with detailed information provided in Note 12 of the financial statements - For detailed information about legal proceedings, this item refers to Note 12 in the Notes to Condensed Consolidated Financial Statements[128] Item 1A. Risk Factors This section confirms no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors described in the 2024 Annual Report on Form 10-K[129] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company reports no unregistered sales or repurchases of its equity securities during the three months ended March 31, 2025 - The company did not have any unregistered sales of equity securities during the quarter[130] - The company did not repurchase any of its equity securities during the three months ended March 31, 2025[131] Item 5. Other Information This section discloses a Rule 10b5-1 trading plan adopted by entities associated with a board member to sell Class A common stock, with no other similar plans adopted by directors or officers - On March 5, 2025, entities associated with board member Dr. Jonathan Rothberg adopted a Rule 10b5-1 trading plan to sell up to 6,202,545 shares of Class A common stock[132] Item 6. Exhibits This section provides an index of exhibits filed with the Form 10-Q, including corporate documents, officer certifications, and Inline XBRL data files - The report includes an index of all exhibits filed, such as officer certifications and Inline XBRL documents[134][136] Signatures The report is duly signed on May 2, 2025, by Heather C. Getz, CPA, as Executive Vice President and Chief Financial & Operations Officer - The report was signed on May 2, 2025, by Heather C. Getz, CPA, Executive Vice President and Chief Financial & Operations Officer[141]