Butterfly Network(US:BFLY)2022-08-02 16:00Revenue Performance - Revenue for the three months ended June 30, 2022, was $19,215,000, an increase from $16,513,000 in the same period of 2021, representing a growth of 10.3% [97]. - Total revenue for the three months ended June 30, 2022, was $19.215 million, an increase of $2.702 million or 16.4% compared to $16.513 million for the same period in 2021 [113]. - Total revenue for the six months ended June 30, 2022 was $34.8 million, an increase of $5.8 million or 20.1% compared to $29.0 million for the same period in 2021 [123]. - Subscription revenue surged by $2.285 million, or 65.3%, to $5.786 million for the three months ended June 30, 2022, driven by a higher volume of SaaS subscriptions sold [115]. - Subscription revenue increased by $4.0 million, or 62.9%, for the six months ended June 30, 2022 compared to the same period in 2021 [124]. Profitability and Loss - Gross profit for the three months ended June 30, 2022, was $10,572,000, compared to $8,220,000 for the same period in 2021, resulting in a gross margin of 55.0% [97]. - Adjusted gross profit for the three months ended June 30, 2022, was $11,249,000, with an adjusted gross margin of 58.5%, up from 50.2% in the same period of 2021 [97]. - Net loss for the three months ended June 30, 2022, was $(35,801,000), compared to $(2,942,000) for the same period in 2021 [102]. - Adjusted EBITDA for the three months ended June 30, 2022, was $(37,820,000), compared to $(28,493,000) for the same period in 2021 [102]. - The net loss for the three months ended June 30, 2022, was $35.801 million, compared to a net loss of $2.942 million for the same period in 2021 [112]. Expenses - Research and development expenses rose by $6.132 million, or 35.9%, to $23.220 million, accounting for 120.8% of total revenue, up from 103.5% [120]. - Sales and marketing expenses increased by $5.898 million, or 56.0%, to $16.438 million, representing 85.5% of total revenue, compared to 63.8% in the prior year [121]. - Subscription revenue cost increased by $1.409 million, or 323.9%, to $1.844 million, primarily due to higher headcount and increased cloud hosting costs [119]. - Total cost of revenue was $8.643 million, representing 45.0% of total revenue, a decrease from 50.2% in the same period last year [117]. - Total cost of revenue increased by $1.6 million, or 10.9%, for the six months ended June 30, 2022, with subscription costs rising significantly by 259.6% [125][126]. - Research and development expenses rose by $14.0 million, or 42.8%, for the six months ended June 30, 2022 compared to the same period in 2021 [127]. - Sales and marketing expenses increased by $11.3 million, or 55.5%, for the six months ended June 30, 2022 compared to the same period in 2021 [128]. - General and administrative expenses increased by $2.1 million, or 12.1%, for the three months ended June 30, 2022 compared to the same period in 2021 [122]. - General and administrative expenses decreased by $13.5 million, or 26.0%, for the six months ended June 30, 2022 compared to the same period in 2021 [129]. Operational Insights - The company continues to expect a higher proportion of sales in health systems compared to eCommerce as it expands its healthcare system software offerings [105]. - The ongoing impact of COVID-19 has resulted in longer sales cycles and slower adoption in the near term due to financial strain on the customer base [82]. - The company is implementing operating efficiencies in its supply chain and manufacturing processes to offset cost increases in component parts [83]. - The company plans to continue investing in its SaaS and subscription offerings, which may affect future subscription revenue costs [107]. - The company expects operational efficiencies in its supply chain to decrease the cost of product revenue as a percentage of product revenues over time [106]. Cash and Financial Position - As of June 30, 2022, cash and cash equivalents were $310.8 million, with restricted cash totaling $6.9 million [132][133]. - Net cash used in operating activities decreased by $1.7 million, or 1.7%, for the six months ended June 30, 2022 compared to the same period in 2021 [137]. - Net cash used in investing activities decreased by $480.8 million, or 97.6%, for the six months ended June 30, 2022 compared to the same period in 2021 [138]. Currency and Foreign Exchange - The company operates primarily within the United States and executes the majority of transactions in U.S. dollars [148]. - The company has not utilized hedging strategies for foreign exchange exposure [148]. - Limited foreign currency translation risk is not expected to materially impact the condensed consolidated financial statements [148].