Butterfly Network(US:BFLY)2025-05-02 13:02Financial 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][14] - Gross profit increased to $13.4 million, a 30% rise from $10.3 million in the prior year, with gross margin improving to 63% from 58% [16] - Adjusted EBITDA loss improved from $13.2 million a year ago to $9.1 million, marking a 31% improvement [16][20] Business Line Data and Key Metrics Changes - Product revenue reached $14.2 million, up 25% year-over-year, driven by higher sales volume [14] - Software and other services revenue was $7.1 million, an 11% increase, 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 rose 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][24] - The company aims to maintain leadership in digital, cloud-connected, open platform, and EMR integrated systems through continued R&D investment [6] - The strategy includes targeting medical schools for personal probe purchases, similar to Apple's approach with laptops [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic headwinds, particularly from USAID funding cuts affecting global health initiatives, but remains optimistic about future growth [12][20] - The company expects to maintain its full-year guidance of approximately 20% revenue growth despite uncertainties in healthcare funding [21] - Management emphasized the long-term value of its technology, which is seen as a more affordable solution compared to traditional ultrasound systems [21][22] Other Important Information - The company completed a secondary public offering generating $81 million, which will support ongoing investments and growth initiatives [17] - The upcoming launch of Compass 2.0 software is anticipated to enhance operational efficiency and create new revenue streams [29] Q&A Session Summary Question: Can you discuss the process for securing the second hospital enterprise contract? - Management highlighted the groundswell of demand from doctors for Butterfly technology, leading to institutional adoption and integration into hospital networks [37][40] Question: What is the funnel for additional opportunities with medical schools? - The company is seeing strong interest from medical schools in one-to-one probe programs, with discussions focused on budget allocations for the upcoming fiscal year [42][44] Question: How impactful have the publications from Rochester and Rutgers been on the hospital channel? - The publications have opened conversations at the C-suite level in hospitals, highlighting the widespread adoption of Butterfly technology among affiliated doctors [51][52] Question: What is the split between price and volume in U.S. product sales? - The split is approximately 80% volume and 20% price, with significant price increases observed in international markets [73] Question: How is the company managing currency risks? - The company reported virtually no foreign currency risk, indicating a stable financial position despite currency fluctuations [61]