Core Viewpoint - Tempus AI and Butterfly Network are two AI-driven healthcare companies that are transforming diagnostics through their innovative approaches, with Tempus focusing on precision oncology and Butterfly on point-of-care imaging [1] Company Performance - Tempus AI's shares have increased by 55.4% over the past year, while Butterfly Network's shares have surged by 114.8%, significantly outperforming the Medical Info Systems industry's gain of 13.6% and the S&P 500's rise of 10.8% [2] Tempus AI Highlights - Revenue Growth and Margin Expansion: Tempus AI reported a 75.4% year-over-year revenue increase in Q1 2025, with its data licensing segment growing by 58%, contributing to overall profitability [6][8] - Positive EBITDA Outlook: The company is on track to achieve adjusted EBITDA profitability in 2025, narrowing its adjusted EBITDA loss to $16.2 million from $43.9 million a year earlier, reflecting strong revenue growth and disciplined spending [7] - Strategic Partnerships and Contract Backlog: Tempus AI secured a $200 million deal with AstraZeneca and Pathos, alongside a remaining contract value of over $1 billion, ensuring predictable revenues and financial stability [8][9] Butterfly Network Highlights - Strong Financial Performance: Butterfly Network achieved 20% year-over-year revenue growth in Q1 2025, with gross margins rising to 63% and adjusted EBITDA loss narrowing to $9.1 million [10] - Diversified Product Portfolio: The company has expanded its offerings under CEO Joseph DeVivo, introducing multiple probes and the Butterfly Garden AI marketplace, which diversifies revenue streams [11] - International Growth: Despite challenges, Butterfly Network's international revenues grew by 9% year-over-year, supported by pricing gains and partnerships with over 800 NGOs [12] Valuation Comparison - Tempus AI has a forward price-to-sales (P/S) ratio of 7.90, while Butterfly Network's ratio is 5.00, indicating that Butterfly is attractively valued compared to the industry average of 5.51 [13] - Analysts suggest a 10.55% upside for Tempus AI based on price targets, while Butterfly Network's average target indicates a potential increase of 94.86% [14][16] Investment Recommendation - Butterfly Network is currently rated a Zacks Rank 2 (Buy), presenting a more compelling investment case compared to Tempus AI, which holds a Zacks Rank 3 (Hold), due to its improving financials and lower valuation [18]

Butterfly Network (BFLY) Q1 2025 Earnings Call May 02, 2025 08:00 AM ET Company Participants Heather Getz - Executive VP, CFO & COOJoseph Devivo - President, CEO & ChairJosh Jennings - Managing DirectorSuraj Kalia - Managing DirectorBen Haynor - Managing Director Conference Call Participants Andrew Brackmann - Equity Research Analyst Operator Good morning, and welcome to the Butterfly Network First Quarter twenty twenty five Earnings Call. My name is Carla, and I will be coordinating your call today. During ...

Butterfly Network (BFLY) Q1 2025 Earnings Call May 02, 2025 08:00 AM ET Speaker0 Good morning, and welcome to the Butterfly Network First Quarter twenty twenty five Earnings Call. My name is Carla, and I will be coordinating your call today. During the presentation, you can register to ask questions by pressing star followed by one on your telephone keypad. I would now like to hand you over to the Chief Financial Officer, Heather Gatz, to begin. Heather, please go ahead when you're ready. Speaker1 Good morn ...