Butterfly Network(US:BFLY)2025-05-02 12:00Financial Data and Key Metrics Changes - The company reported a revenue of $21.2 million for Q1 2025, reflecting a 20% growth compared to the previous year [13] - Adjusted EBITDA loss improved from $13.2 million in Q1 2024 to $9.1 million in Q1 2025, marking a 31% improvement [17] - Gross profit increased by 30% to $13.4 million, with gross margin rising to 63% from 58% [16] Business Line Data and Key Metrics Changes - Product revenue reached $14.2 million, a 25% increase year-over-year, driven by higher sales volume [14] - Software and other services revenue was $7.1 million, up 11% from the prior year, attributed to higher enterprise software revenue [15] - The mix of revenue from software and services decreased to 33% as product revenue growth outpaced software revenue [15] Market Data and Key Metrics Changes - U.S. revenue was $16.6 million, a 24% increase year-over-year, while international revenue increased by 9% to $4.6 million [14] - The company is focusing on expanding its presence in Asia and Latin America, as well as high-potential global health markets [11] Company Strategy and Development Direction - The company is diversifying its product offerings, including the introduction of the AI marketplace Butterfly Garden and the chip licensing program Octave [5] - The strategy includes targeting medical schools for personal probe purchases, similar to Apple's approach with laptops [8] - The company aims to launch Compass 2.0 software in the second half of 2025, enhancing its service offerings [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth despite economic headwinds, particularly in global health funding [12] - The company maintains its full-year guidance of approximately 20% revenue growth and adjusted EBITDA loss between $37 million and $42 million [21] - Management highlighted the importance of maintaining a disciplined approach to expense control while investing in growth areas [21] Other Important Information - The company has completed a secondary public offering, generating $81 million in net proceeds to support ongoing investments [18] - The company is closely monitoring potential tariff impacts, estimating minimal exposure due to its manufacturing and assembly locations [19][20] Q&A Session Summary Question: Positive momentum with the second hospital enterprise contract - Management discussed the groundswell of activity within health systems, leading to increased adoption of Butterfly technology [38][40] Question: Opportunities with schools for one-to-one programs - Management noted strong interest from medical schools in adopting one-to-one probe programs, creating recurring revenue opportunities [44][45] Question: Impact of clinical benefits publications on hospital channel - Management indicated that publications have opened doors to C-suite discussions, enhancing the company's visibility and credibility [52][54] Question: Competitive displacement with IQ3 - Management clarified that the adoption of IQ3 is more about choosing a winner rather than displacing an incumbent, as the market is still developing [70] Question: Price and volume split in U.S. product sales - The company reported an 80% volume and 20% price split in U.S. product sales, with international markets seeing a higher price impact [74] Question: Updates on active partnerships and applications - Management shared insights on ongoing partnerships, including advancements in brain-computer interface technology [77][82] Question: Timing for medical schools to adopt new programs - Management explained that decisions typically occur at the end of the first calendar quarter or in the second quarter, aligning with school budget cycles [85][88]