Butterfly Network(BFLY) - 2025 Q1 - Quarterly Results

First Quarter 2025 Highlights Butterfly Network reported strong Q1 2025 results, achieving 20% YoY revenue growth and meeting guidance, with key operational progress including a successful $81.7 million capital raise, advancement of the Butterfly HomeCare pilot program, and continued momentum in medical education and enterprise adoption - The CEO highlighted a 20% growth quarter, marking a strong start to 2025 and progress in the company's five-year strategic plan. Key growth drivers include medical education, enterprise adoption, and strategic initiatives like Octiv™ and Butterfly HomeCare[3] - Successfully raised $81.7 million in net proceeds from a public offering that closed on January 31, 2025, significantly strengthening the company's balance sheet[5][6] - The Butterfly HomeCare pilot program for congestive heart failure entered its clinical phase. Early results are promising, with no rehospitalizations among scanned patients, a significant outcome considering historical readmission rates[5][6] - Momentum in medical education continued, with one of the largest U.S. Colleges of Osteopathic Medicine committing to a one-probe-per-student model for the future[6] - The Butterfly Garden AI development platform expanded to 23 partners. Partner DESKi received FDA clearance for its HeartFocus AI-powered cardiac app, marking the second commercialization from the platform[6] First Quarter 2025 Financial Performance The company achieved total revenue of $21.2 million, a 20% increase YoY, driven by strong U.S. sales and the higher price of the iQ3 probe, while gross margin improved significantly to 63.0% from 58.2%, operating expenses decreased by 3%, resulting in a reduced net loss of $14.0 million and an improved Adjusted EBITDA loss of $9.1 million Q1 2025 Key Financial Metrics (YoY Comparison) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $21.2M | $17.7M | +20% | | U.S. Revenue | $16.6M | - | +24% | | International Revenue | $4.6M | - | +9% | | Gross Profit | $13.4M | $10.3M | +30% | | Gross Margin | 63.0% | 58.2% | +4.8 p.p. | | Operating Expenses | $31.8M | $32.9M | -3% | | Net Loss | ($14.0M) | ($21.8M) | +36% Improvement | | Adjusted EBITDA Loss | ($9.1M) | ($13.2M) | +31% Improvement | | Adjusted EPS | ($0.04) | ($0.07) | +43% Improvement | - Revenue growth was primarily driven by higher sales volume to U.S. health systems, the impact of the iQ3 probe's higher selling price, and the delivery of semiconductor chips to newly onboarded partners[7] - The increase in gross margin was mainly due to higher average selling prices and improved software margins resulting from reduced software amortization and lower hosting costs[8] - The company ended the quarter with $155.2 million in cash and cash equivalents[13] Full Year 2025 Guidance Butterfly Network has reiterated its full-year 2025 guidance, projecting revenue between $96 million and $100 million, which represents approximately 20% growth, and an Adjusted EBITDA loss in the range of $37 million to $42 million Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | $96M - $100M (~20% growth) | | Adjusted EBITDA Loss | ($37M) - ($42M) | Financial Statements The financial statements detail the company's performance and position, with the income statement showing a reduced net loss compared to the prior year, the balance sheet reflecting a stronger cash position following a public offering with cash and equivalents increasing to $155.2 million, and the cash flow statement indicating a 43% reduction in cash used in operations and a significant inflow from financing activities Condensed Consolidated Statements of Operations Q1 2025 vs Q1 2024 Income Statement Highlights (in thousands) | Account | 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 Balance Sheets Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $155,212 | $88,775 | | Total Current Assets | $257,383 | $192,613 | | Total Assets | $318,412 | $256,082 | | Total Liabilities | $78,716 | $87,250 | | Total Stockholders' Equity | $239,696 | $168,832 | Condensed Consolidated Statements of Cash Flows Cash Flow Summary for Three Months Ended March 31 (in thousands) | Activity | 2025 | 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 | $0 | - The significant cash provided by financing activities in Q1 2025 was primarily due to $81.1 million in net proceeds from a share offering[31] Non-GAAP Financial Measures Reconciliation The company provides reconciliations for non-GAAP measures to their most comparable GAAP counterparts, with Adjusted Gross Margin at 63.3% for Q1 2025 and the reconciliation from Net Loss to Adjusted EBITDA showing an Adjusted EBITDA loss of $9.1 million, a significant improvement from the prior-year period Adjusted Gross Profit and Adjusted Gross Margin Adjusted Gross Profit Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit (GAAP) | $13,380 | $10,276 | | Add: Write-downs of inventories | $52 | $0 | | Adjusted Gross Profit (Non-GAAP) | $13,432 | $10,276 | | Adjusted Gross Margin | 63.3% | 58.2% | Adjusted EBITDA and Adjusted EPS Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss (GAAP) | $(13,967) | $(21,761) | | Adjustments (Stock Comp, etc.) | $4,899 | $8,605 | | Adjusted EBITDA (Non-GAAP) | $(9,068) | $(13,156) | - Adjusted EPS for Q1 2025 was $(0.04), an improvement from $(0.07) in Q1 2024[35]