Butterfly Network's Q3 Financial Highlights and Future Plans
Butterfly Network Reports Third Quarter Financial Results
Butterfly Network, Inc. (NYSE: BFLY), a digital health company revolutionizing ultrasound technology through portable devices, has disclosed its financial outcomes for the third quarter. With an impressive growth trajectory and future aspirations, this report summarizes the core financial highlights and strategic developments of the company.
Key Financial Performance Indicators
In the third quarter, Butterfly Network announced total revenues of $20.6 million, marking a significant increase of 33% from the previous year's $15.4 million. Notably, U.S. revenue contributed $13.1 million, encompassing a 27% rise attributed to the higher selling price of the next-generation iQ3 probe and augmented enterprise software revenue. Furthermore, international revenue climbed 36% year-over-year, reaching $5.2 million, aided by the expansion into new geographies.
The company's product revenue saw a remarkable increase of 55%, totaling $13.5 million, primarily driven by a 37% growth in units sold for the iQ3 model. In contrast, software and services revenue grew modestly by 5% to $7.0 million, accounting for 34% of total revenue, despite a slight decrease in the mix attributable to the heightened product sales. The enterprise software segment grew by an impressive 5 percentage points compared to last year.
Gross Profit and Operating Expenses
Butterfly Network reported a gross profit of $12.2 million, compared to $9.4 million during the same period last year. An adjusted gross profit analysis revealed an adjusted figure of $12.3 million, reflecting an overall gross margin decrease to 59.5% from 60.8% due to increased manufacturing costs and product mix shifts.
Operating expenses exhibited a substantial reduction of 30%, amounting to $29.5 million, down from $41.9 million the preceding year. This decrease resulted from personnel reforms and a systematic rationalization of non-payroll utilities across operations.
Net Loss and Shareholder Guidance
The net loss attributable to Butterfly Network was reported at $16.9 million, a reduction from $27.4 million in the year-ago quarter. Similarly, the adjusted EBITDA loss narrowed to $8.4 million from the previous year’s loss of $12.5 million. Adjusted earnings per share (EPS) improved to ($0.05) from ($0.07).
As of the quarter ending September 30, 2024, the company maintained robust liquidity with cash, cash equivalents, and restricted cash totaling $97.8 million. In light of these results, Butterfly Network has raised its revenue projections for the fiscal year 2024, targeting between $79 to $81 million, representing over 20% growth. Adjusted EBITDA expectations have also been improved, anticipating a range of losses decreasing to $40-$42 million.
Strategic Initiatives and Industry Advancements
Joseph DeVivo, President and CEO of Butterfly Network, emphasized the company’s commitment to its strategic growth pillars established earlier in the year during the Investor Day. One significant advancement includes the launch of new developments within its Butterfly HomeCare services, designed to enhance chronic care management through AI-powered imaging.
Additionally, Butterfly Network actively progressed in various operational fronts, including launching the Butterfly iQ3 device in European markets and forming vital partnerships, including enhancements in veterinary applications. Under new developments, they plan to introduce Octiv, a subsidiary aimed at expanding market access to the proprietary Butterfly chip technology.
Recent Collaborations and Expansions
Butterfly has fostered extensive collaboration within the medical education sector, with Kansas City University adopting the Butterfly ScanLab platform as an educational foundation for point-of-care ultrasound training. Furthermore, the commitment to expansion saw Butterfly’s services made available in multiple new international markets.
The company’s operational excellence continues to receive recognition from institutions, displaying how the utilization of Butterfly technology is enhancing patient care delivery and optimizing financial outcomes within healthcare systems.
Frequently Asked Questions
What were Butterfly Network's total revenues for Q3 2024?
Butterfly Network reported total revenues of $20.6 million in Q3 2024, a 33% increase compared to the previous year.
How has operating expenses changed over the last year?
Operating expenses have decreased by 30%, from $41.9 million to $29.5 million.
What is the adjusted EPS for Q3 2024?
The adjusted earnings per share (EPS) for the third quarter of 2024 was ($0.05).
What are Butterfly Network's revenue guidance for FY 2024?
Butterfly Network increased its revenue guidance for FY 2024 to between $79 million to $81 million.
What strategic initiatives is Butterfly Network currently pursuing?
Butterfly Network is focusing on expanding its Butterfly HomeCare services, international market expansion, and forming strategic partnerships in medical education and veterinary advancements.
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