Butterfly Network Reports Fourth Quarter 2023 Financial Results
- Butterfly Network reported $65.9 million in revenue for the quarter and year ended December 31, 2023, surpassing expectations.
- The company successfully removed over $170 million in costs, reducing annual cash burn to approximately $60 million.
- Butterfly launched the next generation ultrasound device iQ3 and the educational app ScanLab in 2024.
- An upcoming Investor Day on March 18, 2024, at the New York Stock Exchange was announced to showcase growth initiatives.
- The FDA clearance and launch of the iQ3 ultrasound system with advanced features and competitive pricing demonstrate Butterfly's commitment to innovation.
- None.
Insights
Butterfly Network's announcement indicates a strategic pivot towards cost efficiency and innovation-driven growth. The reported revenue of $65.9 million surpassing expectations suggests a positive market reception to their products. The reduction in annual cash burn to approximately $60 million, from the prior removal of over $170 million in costs, reflects a disciplined approach to financial management. This cost restructuring could enhance profitability and shareholder value in the long term.
The launch of the iQ3 device and FDA clearance represent significant milestones in product development. The advanced features and competitive pricing could disrupt the point-of-care ultrasound market, potentially increasing market share. Investors should monitor adoption rates and customer feedback for indications of the product's performance relative to competitors.
Strategic partnerships and international expansion plans could serve as catalysts for further growth. The company's focus on educational tools like ScanLab™ may also contribute to an increase in the user base, driving long-term revenue growth. However, the actual impact on the stock will depend on the execution of these initiatives and the company's ability to sustain its innovation pipeline.
The Butterfly iQ3's advanced semiconductor chip and 3D capabilities at a lower price point suggest a technological leap that could democratize medical imaging. The device's portability and accessibility could make it a game-changer in remote and underserved areas, potentially expanding the total addressable market.
Butterfly's focus on ultrasound AI and the educational app ScanLab™ highlights the company's commitment to integrating technology with user-centric solutions. The potential to improve diagnostic accuracy and patient outcomes through AI-enhanced imaging could differentiate Butterfly from its competitors.
International expansion, particularly in Asia, could expose Butterfly to high-growth markets. However, it also introduces regulatory and competitive challenges. Success in these markets will depend on the company's ability to navigate local regulations and tailor its offerings to meet diverse customer needs.
The emphasis on cost savings and new initiatives is indicative of a company in transition, aiming to solidify its place in a competitive industry. Butterfly Network's strategic refocusing and the announcement of an Investor Day could signal to the market that the company is confident in its trajectory and is seeking to bolster investor relations.
The healthcare technology sector is rapidly evolving and Butterfly's advancements in portable ultrasound technology place it at the forefront of this change. The company's ability to reduce costs while investing in growth initiatives is a delicate balance that could pay dividends if managed effectively.
Investor sentiment may be buoyed by the FDA clearance of the iQ3, signaling regulatory confidence in the product. However, the true test will be the product's commercial success and the company's ability to maintain its competitive edge through continuous innovation and strategic partnerships.
Completed Cost Savings and New Initiatives Position Butterfly for Growth
-
Delivered
$65.9 million - Launched next generation device iQ3 and ScanLab in 2024
-
Completed the removal of over
$170 million -
Reduced annual cash burn to approximately
$60 million - Announced upcoming Investor Day on March 18, 2024, at the New York Stock Exchange
Joseph DeVivo, Butterfly’s Chairman and CEO said, “2023 was a transition year for Butterfly as we delivered on our initiatives and focused on rightsizing our business by resizing our cost base, refocusing our product and growth strategy, and investing in our go-to-market channels. The team’s hard work in executing our plan has laid a solid foundation for Butterfly to grow on in 2024 and onwards.”
DeVivo continued, “Throughout 2023, and more recently, we invested in and launched the products and applications that will propel our growth initiatives. Ahead of schedule in early 2024, we received Food and Drug Administration clearance on, and subsequently launched, our third-generation point-of-care ultrasound system, Butterfly iQ3™. Powered by our most advanced semiconductor chip, the iQ3 has an unparalleled image quality and advanced 3D capabilities that now rival competitors’ offerings - all in a more easily accessible format and significantly lower price point.”
“Advances in our technology continue to attract exciting partnerships that further expands our Butterfly Garden and Powered by Butterfly ecosystems. This growing network, coupled with our own advances in ultrasound AI, and our recent launch of a new educational app ScanLab™, will help drive adoption, to fuel near-term growth. On the international front, we look forward to strengthening our offerings in
“We are excited about what 2024 has in store for Butterfly and are confident in our growth prospects. I look forward to sharing more about our growth initiatives, include home and wearables, at our upcoming Investor Day at the New York Stock Exchange.”
Recent Business Highlights:
- Received FDA Clearance for and Launches Next-Generation Butterfly iQ3™: On February 13, 2024, Butterfly announced the commercial launch of its third-generation handheld point-of-care ultrasound (POCUS) system, Butterfly iQ3™, which received FDA clearance ahead of schedule in January 2024.
- Mendaera Agreement: On December 19, 2023, Butterfly announced an agreement to commercialize a novel robotic system that is Powered by Butterfly’s Ultrasound-on-Chip™ technology. Upon commercialization, the deal includes revenue share for every unit sold.
- Forest Neurotech Agreement: On October 24, 2023, Butterfly announced that it had entered into a five-year co-development agreement with Forest Neurotech. The agreement includes payments to Butterfly for annual licensing, chip purchases, services, and development milestones. Additional revenue is anticipated for every unit sold upon commercialization.
- Butterfly Garden: Signed 13 partners into our Butterfly Garden, most recently including Deepecho, a prenatal ultrasound AI company that announced its entrance into the program yesterday, February 27, 2024, to build and deploy AI for improved efficiency and accuracy of fetal ultrasound.
-
Completed Cost Reduction & Reorganization: Completed a
$170 million $60 million
-
Ultrasound Education Offerings: On October 9, 2023, the Company announced the addition of two new ultrasound education offerings that will complete its full suite of education products.
- Butterfly Certified™, a complete set of virtual and in-person POCUS courses designed to meet local training or privileging requirements, delivered in partnership with the Global Ultrasound Institute.
- ScanLab™, an AI-powered educational application for ultrasound scanning practice.
Three Months Ended December 31, 2023 Financial Results
Revenue: Total revenue was
-
Product revenue was
$10.2 million 20% versus the prior year period, driven by the distributor orders in 2022 and lower ecommerce volume. -
Software and other services revenue was flat year-over-year at
$6.4 million 35% versus the prior year while individual licenses and service revenue were down. Software and services mix was39% of revenue and increased by5% versus prior year due to a higher installed base of product with the accompanying subscription software, renewals on the existing base of software users, and software implementations completed during the quarter.
Gross profit: Gross loss was
Operating expenses: Operating expenses were
Total operating expenses excluding stock-based compensation and Other expense were
Net loss: Net loss was
Adjusted EBITDA: Adjusted EBITDA loss was
Cash, cash equivalents, and restricted cash: Cash, cash equivalents, and restricted cash were
Guidance
For the Fiscal Year 2024:
- Low double digit Revenue growth
-
Adjusted EBITDA loss of
$60 million $50 million
A reconciliation of net loss to adjusted EBITDA and Gross Margin to Adjusted Gross Margin for the three months and years ended December 31, 2023, and 2022 is provided in the financial schedules that are part of this press release. An explanation of these non-GAAP financial measures is also included below under the heading “Non-GAAP Financial Measures.”
Conference Call
A conference call and webcast to discuss the fourth quarter and full year 2023 financial results and operational progress is scheduled for 5:00 pm ET, February 28, 2024. The conference call will be broadcast live in listen-only mode via a webcast on Butterfly’s Investor Relations website at Events & Presentations. Individuals interested in listening to the conference call on their telephone may do so by dialing in approximately ten minutes prior to start time:
US domestic callers: +1 (833) 470-1428
Global Dial-In Numbers: https://www.netroadshow.com/events/global-numbers?confId=59870
Access Code: 670430
March Investor Day
Separately, Butterfly will host an Investor Day event on Monday, March 18, 2024 at the New York Stock Exchange beginning at 12:00 pm ET. Members of Butterfly’s management team will deliver a corporate presentation and along with customers and partners, demonstrate the newly launched next generation ultrasound technology, including its latest features and functionality. Also joining Butterfly will be key partners who will detail co-developed products. Additional details to follow.
About Butterfly Network
Founded by Dr. Jonathan Rothberg in 2011, Butterfly Network is a digital health company with a mission is to democratize medical imaging by making high-quality ultrasound affordable, easy-to-use, globally accessible, and intelligently connected, including for the 4.7 billion people around the world lacking access to ultrasound. Butterfly created the world's first handheld single-probe, whole-body ultrasound system using semiconductor technology, Butterfly iQ. The company has continued to innovate, leveraging the benefits of Moore’s Law, to launch its second generation Butterfly iQ+ in 2020, and third generation iQ3 in 2024 – each with increased processing power and performance enhancements. The disruptive technology has been recognized by TIME’s Best Inventions, Fast Company’s World Changing Ideas, CNBC Disruptor 50, and MedTech Breakthrough Awards, among other accolades. With its proprietary Ultrasound-on-Chip™ technology, intelligent software, and educational offerings, Butterfly is paving the way to mass adoption of ultrasound for earlier detection and remote management of health conditions around the world. Butterfly devices are commercially available to trained healthcare practitioners in areas including, but not limited to, parts of
Non-GAAP Financial Measures
In addition to providing financial measures based on generally accepted accounting principles in
Adjusted gross profit, adjusted gross margin, and adjusted EBITDA are key performance measures that our management uses to assess our operating performance. These non-GAAP measures facilitate internal comparisons of our operating performance on a more consistent basis. We use these performance measures for business planning purposes and forecasting. We believe that adjusted gross profit, adjusted gross margin, and adjusted EBITDA enhance an investor’s understanding of our financial performance as they are useful in assessing our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business.
Adjusted gross profit, adjusted gross margin, and adjusted EBITDA may not be comparable to similarly titled measures of other companies because they may not calculate these measures in the same manner. Adjusted gross profit, adjusted gross margin, and adjusted EBITDA are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. When evaluating the Company’s performance, you should consider adjusted gross profit, adjusted gross margin, and adjusted EBITDA alongside other financial performance measures prepared in accordance with GAAP, including gross profit and loss, gross margin, and net loss.
The non-GAAP financial measures do not replace the presentation of our GAAP financial results and should only be used as a supplement to, not as a substitute for, our financial results presented in accordance with GAAP. In this press release, we have provided reconciliations of adjusted gross profit to gross profit and loss, adjusted gross margin to gross margin, and adjusted EBITDA to net loss, the most directly comparable GAAP financial measures. Reconciliations of adjusted gross profit, adjusted gross margin, and adjusted EBITDA to corresponding GAAP measures are not available on a forward-looking basis because we are unable to predict with reasonable certainty the non-cash component of employee compensation expense, changes in our working capital needs, variances in our supply chain, the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations, and other such items without unreasonable effort. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with GAAP. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Our actual results may differ from our expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, our expectations with respect to financial results, future performance, commercialization and plans to deploy our products and services, development of products and services, and the size and potential growth of current or future markets for our products and services. Forward-looking statements are based on our current beliefs and assumptions and on information currently available to us. These forward-looking statements involve significant known and unknown risks and uncertainties and other factors that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside our control and are difficult to predict. Factors that may cause such differences include, but are not limited to: our ability to grow and manage growth effectively; the success, cost, and timing of our product and service development activities; the potential attributes and benefits of our products and services; the degree to which our products and services are accepted by healthcare practitioners and patients for their approved uses; our ability to obtain and maintain regulatory approval for our products, and any related restrictions and limitations of any approved product; our ability to identify, in-license, or acquire additional technology; our ability to maintain our existing license, manufacturing, supply, and distribution agreements; our ability to compete with other companies currently marketing or engaged in the development of products and services that we are currently marketing or developing; changes in applicable laws or regulations; the size and growth potential of the markets for our products and services, and our ability to serve those markets, either alone or in partnership with others; the pricing of our products and services, and reimbursement for medical procedures conducted using our products and services; our estimates regarding expenses, revenue, capital requirements, and needs for additional financing; our financial performance; our ability to raise financing in the future; and other risks and uncertainties indicated from time to time in our most recent Annual Report on Form 10-K, as amended, or in subsequent filings that we make with the Securities and Exchange Commission. We caution that the foregoing list of factors is not exclusive. We caution you not to place undue reliance upon any forward-looking statements, which speak only as of the date of this press release. We do not undertake or accept any obligation or undertake to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based.
BUTTERFLY NETWORK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except share and per share amounts) (Unaudited) |
||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product |
|
$ |
10,162 |
|
|
$ |
12,656 |
|
|
$ |
40,036 |
|
|
$ |
50,263 |
|
Software and other services |
|
|
6,354 |
|
|
|
6,327 |
|
|
|
25,864 |
|
|
|
23,127 |
|
Total revenue |
|
|
16,516 |
|
|
|
18,983 |
|
|
|
65,900 |
|
|
|
73,390 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product |
|
|
26,889 |
|
|
|
7,323 |
|
|
|
40,655 |
|
|
|
26,804 |
|
Software and other services |
|
|
2,163 |
|
|
|
2,104 |
|
|
|
8,389 |
|
|
|
7,126 |
|
Total cost of revenue |
|
|
29,052 |
|
|
|
9,427 |
|
|
|
49,044 |
|
|
|
33,930 |
|
Gross profit (loss) |
|
|
(12,536 |
) |
|
|
9,556 |
|
|
|
16,856 |
|
|
|
39,460 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development |
|
|
11,207 |
|
|
|
19,161 |
|
|
|
55,616 |
|
|
|
88,044 |
|
Sales and marketing |
|
|
10,297 |
|
|
|
12,373 |
|
|
|
39,073 |
|
|
|
59,494 |
|
General and administrative |
|
|
12,375 |
|
|
|
23,516 |
|
|
|
49,613 |
|
|
|
77,596 |
|
Other |
|
|
316 |
|
|
|
3,508 |
|
|
|
18,164 |
|
|
|
7,346 |
|
Total operating expenses |
|
|
34,195 |
|
|
|
58,558 |
|
|
|
162,466 |
|
|
|
232,480 |
|
Loss from operations |
|
|
(46,731 |
) |
|
|
(49,002 |
) |
|
|
(145,610 |
) |
|
|
(193,020 |
) |
Interest income |
|
|
1,736 |
|
|
|
1,810 |
|
|
|
7,450 |
|
|
|
3,384 |
|
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Change in fair value of warrant liabilities |
|
|
620 |
|
|
|
11,979 |
|
|
|
4,544 |
|
|
|
20,859 |
|
Other income (expense), net |
|
|
254 |
|
|
|
1,484 |
|
|
|
(2 |
) |
|
|
98 |
|
Loss before provision for income taxes |
|
|
(44,121 |
) |
|
|
(33,729 |
) |
|
|
(133,618 |
) |
|
|
(168,681 |
) |
Provision for income taxes |
|
|
— |
|
|
|
(26 |
) |
|
|
82 |
|
|
|
42 |
|
Net loss and comprehensive loss |
|
$ |
(44,121 |
) |
|
$ |
(33,703 |
) |
|
$ |
(133,700 |
) |
|
$ |
(168,723 |
) |
Net loss per common share attributable to Class A and B common stockholders, basic and diluted |
|
$ |
(0.21 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.65 |
) |
|
$ |
(0.84 |
) |
Weighted-average shares used to compute net loss per share attributable to Class A and B common stockholders, basic and diluted |
|
|
207,274,099 |
|
|
|
200,797,928 |
|
|
|
205,385,544 |
|
|
|
199,848,386 |
|
BUTTERFLY NETWORK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) |
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December 31, |
||||||
|
|
2023 |
|
2022 |
||||
Assets |
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|
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|
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Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
134,437 |
|
|
$ |
162,561 |
|
Marketable securities |
|
|
— |
|
|
|
75,250 |
|
Accounts receivable, net |
|
|
13,418 |
|
|
|
14,685 |
|
Inventories |
|
|
73,022 |
|
|
|
59,970 |
|
Current portion of vendor advances |
|
|
2,815 |
|
|
|
35,182 |
|
Prepaid expenses and other current assets |
|
|
7,571 |
|
|
|
9,489 |
|
Total current assets |
|
|
231,263 |
|
|
|
357,137 |
|
Property and equipment, net |
|
|
25,321 |
|
|
|
31,331 |
|
Intangible assets, net |
|
|
10,317 |
|
|
|
— |
|
Non-current portion of vendor advances |
|
|
15,276 |
|
|
|
— |
|
Operating lease assets |
|
|
15,675 |
|
|
|
21,567 |
|
Other non-current assets |
|
|
6,422 |
|
|
|
7,535 |
|
Total assets |
|
$ |
304,274 |
|
|
$ |
417,570 |
|
Liabilities and stockholders’ equity |
|
|
|
|
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|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
5,090 |
|
|
$ |
7,211 |
|
Deferred revenue, current |
|
|
15,625 |
|
|
|
15,856 |
|
Accrued purchase commitments, current |
|
|
131 |
|
|
|
2,146 |
|
Accrued expenses and other current liabilities |
|
|
23,425 |
|
|
|
26,116 |
|
Total current liabilities |
|
|
44,271 |
|
|
|
51,329 |
|
Deferred revenue, non-current |
|
|
7,394 |
|
|
|
4,957 |
|
Warrant liabilities |
|
|
826 |
|
|
|
5,370 |
|
Operating lease liabilities |
|
|
22,835 |
|
|
|
29,966 |
|
Other non-current liabilities |
|
|
8,895 |
|
|
|
588 |
|
Total liabilities |
|
|
84,221 |
|
|
|
92,210 |
|
Commitments and contingencies |
|
|
|
|
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|
||
Stockholders’ equity: |
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|
|
|
|
|
||
Class A common stock |
|
|
18 |
|
|
|
17 |
|
Class B common stock |
|
|
3 |
|
|
|
3 |
|
Additional paid-in capital |
|
|
949,670 |
|
|
|
921,278 |
|
Accumulated deficit |
|
|
(729,638 |
) |
|
|
(595,938 |
) |
Total stockholders’ equity |
|
|
220,053 |
|
|
|
325,360 |
|
Total liabilities and stockholders’ equity |
|
$ |
304,274 |
|
|
$ |
417,570 |
|
BUTTERFLY NETWORK, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
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|
|
Year ended December 31, |
||||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(133,700 |
) |
|
$ |
(168,723 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation, amortization, and impairments |
|
|
10,574 |
|
|
|
5,935 |
|
Write-down of inventories |
|
|
21,083 |
|
|
|
783 |
|
Stock-based compensation expense |
|
|
27,480 |
|
|
|
42,531 |
|
Change in fair value of warrant liabilities |
|
|
(4,544 |
) |
|
|
(20,859 |
) |
Gain on lease termination |
|
|
(214 |
) |
|
|
— |
|
Other |
|
|
633 |
|
|
|
615 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(162 |
) |
|
|
(3,063 |
) |
Inventories |
|
|
(34,135 |
) |
|
|
(24,510 |
) |
Prepaid expenses and other assets |
|
|
2,979 |
|
|
|
3,819 |
|
Vendor advances |
|
|
17,091 |
|
|
|
5,100 |
|
Accounts payable |
|
|
(1,875 |
) |
|
|
1,216 |
|
Deferred revenue |
|
|
2,206 |
|
|
|
2,266 |
|
Accrued purchase commitments |
|
|
(2,015 |
) |
|
|
(17,383 |
) |
Change in operating lease assets and liabilities |
|
|
(635 |
) |
|
|
2,257 |
|
Accrued expenses and other liabilities |
|
|
(3,586 |
) |
|
|
901 |
|
Net cash used in operating activities |
|
|
(98,820 |
) |
|
|
(169,115 |
) |
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of marketable securities |
|
|
(297 |
) |
|
|
(75,534 |
) |
Sales of marketable securities |
|
|
76,484 |
|
|
|
— |
|
Purchases of property, equipment, and intangible assets, including capitalized software |
|
|
(5,783 |
) |
|
|
(18,302 |
) |
Sales of property and equipment |
|
|
10 |
|
|
|
57 |
|
Net cash provided by (used in) investing activities |
|
|
70,414 |
|
|
|
(93,779 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from exercise of stock options and warrants |
|
|
228 |
|
|
|
2,982 |
|
Other financing activities |
|
|
— |
|
|
|
(101 |
) |
Net cash provided by financing activities |
|
|
228 |
|
|
|
2,881 |
|
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
|
(28,178 |
) |
|
|
(260,013 |
) |
Cash, cash equivalents, and restricted cash, beginning of period |
|
|
166,828 |
|
|
|
426,841 |
|
Cash, cash equivalents, and restricted cash, end of period |
|
$ |
138,650 |
|
|
$ |
166,828 |
|
BUTTERFLY NETWORK, INC. ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN (In thousands) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenue |
|
$ |
16,516 |
|
|
$ |
18,983 |
|
|
$ |
65,900 |
|
|
$ |
73,390 |
|
Cost of revenue |
|
|
29,052 |
|
|
|
9,427 |
|
|
|
49,044 |
|
|
|
33,930 |
|
Gross profit (loss) |
|
|
(12,536 |
) |
|
|
9,556 |
|
|
|
16,856 |
|
|
|
39,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
(75.9 |
)% |
|
|
50.3 |
% |
|
|
25.6 |
% |
|
|
53.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-downs and write-offs of inventories |
|
|
21,891 |
|
|
|
783 |
|
|
|
21,891 |
|
|
|
783 |
|
Adjusted gross profit |
|
$ |
9,355 |
|
|
$ |
10,339 |
|
|
$ |
38,747 |
|
|
$ |
40,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin |
|
|
56.6 |
% |
|
|
54.5 |
% |
|
|
58.8 |
% |
|
|
54.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
$ |
1,458 |
|
|
$ |
1,207 |
|
|
$ |
5,585 |
|
|
$ |
3,328 |
|
% of revenue |
|
|
8.8 |
% |
|
|
6.4 |
% |
|
|
8.5 |
% |
|
|
4.5 |
% |
BUTTERFLY NETWORK, INC. ADJUSTED EBITDA (In thousands) (Unaudited) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Included on the condensed consolidated statements of operations and comprehensive loss as: |
|
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss |
Net loss |
|
$ |
(44,121 |
) |
|
$ |
(33,703 |
) |
|
$ |
(133,700 |
) |
|
$ |
(168,723 |
) |
Interest income |
Interest income |
|
|
(1,736 |
) |
|
|
(1,810 |
) |
|
|
(7,450 |
) |
|
|
(3,384 |
) |
Interest expense |
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Change in fair value of warrant liabilities |
Change in fair value of warrant liabilities |
|
|
(620 |
) |
|
|
(11,979 |
) |
|
|
(4,544 |
) |
|
|
(20,859 |
) |
Other expense (income), net |
Other income (expense), net |
|
|
(254 |
) |
|
|
(1,484 |
) |
|
|
2 |
|
|
|
(98 |
) |
Provision for income taxes |
Provision for income taxes |
|
|
— |
|
|
|
(26 |
) |
|
|
82 |
|
|
|
42 |
|
Stock-based compensation |
R&D, S&M, and G&A |
|
|
6,556 |
|
|
|
15,102 |
|
|
|
27,480 |
|
|
|
42,531 |
|
Depreciation and amortization |
Cost of revenue, R&D, S&M, and G&A |
|
|
2,242 |
|
|
|
1,869 |
|
|
|
10,574 |
|
|
|
5,935 |
|
Write-downs and write-offs of inventories |
Cost of revenue |
|
|
21,891 |
|
|
|
783 |
|
|
|
21,891 |
|
|
|
783 |
|
Other |
Other |
|
|
316 |
|
|
|
3,508 |
|
|
|
18,164 |
|
|
|
7,346 |
|
Adjusted EBITDA |
|
|
$ |
(15,726 |
) |
|
$ |
(27,740 |
) |
|
$ |
(67,501 |
) |
|
$ |
(136,425 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228452495/en/
Investors
Heather Getz
Chief Financial and Operations Officer, Butterfly
hgetz@butterflynetinc.com
Neal Nagarajan
IR Agency Representative, Sloane & Company
(301) 273-5662
nnagarajan@sloanepr.com
Source: Butterfly Network, Inc.
FAQ
What was Butterfly Network's revenue for the quarter and year ended December 31, 2023?
How much cost savings did Butterfly Network achieve?
What new products did Butterfly Network launch in 2024?
When is Butterfly Network's upcoming Investor Day scheduled?
What highlights the innovation commitment of Butterfly Network?
