Butterfly Network Reports Fourth Quarter and Full Year 2021 Financial Results
Butterfly Network reported significant financial growth with 2021 revenue reaching $62.6 million, marking a 35.3% increase over 2020.
Fourth-quarter revenue rose 21.3% to $19.0 million, driven by a 15.1% increase in product revenue. However, operating expenses surged 71.0% to $52.8 million, leading to a net loss of $15.2 million for Q4.
For 2022, the company projects revenue growth of 33% to 41%, expecting a net loss between $225 million and $245 million.
- Full year revenue increased 35.3% to $62.6 million.
- Subscription revenue surged 85.9% to $14.7 million.
- Adjusted gross profit improved significantly to $31.6 million.
- Operating expenses jumped 71.0% to $52.8 million in Q4.
- Net loss for 2021 was $32.4 million, despite significantly reduced losses from 2020.
- 2022 net loss guidance suggests a steep increase to $225 million to $245 million.
Full Year 2021 Revenue Growth of
Positive Momentum Driving a New Standard of Care with Butterfly
Financial and Recent Business Highlights:
-
Reported revenue of
$62.6 million December 31, 2021 , representing a35.3% increase from$46.3 million December 31, 2020 . -
Launched Butterfly Blueprint™ including AI-powered image capture and interpretation powered by
Caption Health . -
Announced a large-scale Butterfly Blueprint deployment at The
University of Rochester Medical Center . -
Partnered with Ambra, an
Intelerad Company and maker of a leading cloud-based, medical image management to enhance ultrasound data integration with Butterfly Blueprint.
“We have made significant progress in our first year as a public company,” said Dr.
Fourth Quarter 2021 Financial Results
Fourth quarter revenue increased
Gross profit for the fourth quarter of 2021 was
Total gross margin for the quarter was
Operating expenses were
Net loss was
Cash and cash equivalents were
A reconciliation of Adjusted EBITDA to net loss, Adjusted gross profit to gross profit, and Adjusted gross margin to gross margin for the three months and the year ended
Full Year 2021 Financial Results
Full year revenue increased
Gross profit for the full year 2021 was
Total gross margin for the full year 2021 was
Full year operating expenses were
Full year net loss was
2022 Financial Guidance
-
Revenue is expected to be approximately
$83 million $88 million 33% to41% growth year-over-year. -
Net loss is expected to be approximately
$225 million $245 million $175 million $195 million
Butterfly may incur charges, realize gains or losses, incur financing costs, or interest expense, or experience other events in 2022 that could cause actual results to vary materially from this guidance.
Conference Call
A conference call to review the fourth quarter and full year 2021 financial results and provide a business update is scheduled for
About
Founded by Dr.
Butterfly iQ+ is a prescription device intended for qualified healthcare professionals only.
For more information, visit www.butterflynetwork.com.
Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in
Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin are key performance measures that the Company’s management uses to assess our operating performance. These non-GAAP measures facilitate internal comparisons of the Company’s operating performance on a more consistent basis. The Company uses these performance measures for business planning purposes and forecasting. The Company believes that Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin enhance an investor’s understanding of the Company’s financial performance as they are useful in assessing its operating performance from period-to-period by excluding certain items that the Company believes are not representative of its core business.
Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin may not be comparable to similarly titled measures of other companies because they may not calculate these measures in the same manner. Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin 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 EBITDA, Adjusted gross profit and Adjusted gross margin alongside other financial performance measures prepared in accordance with GAAP, including net loss, gross profit, and gross margin.
The non-GAAP financial measures do not replace the presentation of the Company’s GAAP financial results and should only be used as a supplement to, not as a substitute for, the Company’s financial results presented in accordance with GAAP. In this press release, the Company has provided a reconciliation of Adjusted EBITDA to net loss, Adjusted gross profit to gross profit, and Adjusted gross margin to gross margin, the most directly comparable GAAP financial measures. A reconciliation of Adjusted EBITDA, Adjusted gross profit and Adjusted gross margin to corresponding GAAP measures is not available on a forward-looking basis because the Company is unable to predict with reasonable certainty the non-cash component of employee compensation expense, changes in its working capital needs, variances in its supply chain, the impact of earnings or charges resulting from matters the Company considers not to be reflective, on a recurring basis, of its ongoing operations, and other such items without unreasonable effort. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with GAAP. Management strongly encourages investors to review the Company’s financial statements and publicly filed reports in their entirety and not 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. The Company’s actual results may differ from its 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,” “believes,” “predicts,” “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, the Company’s expectations with respect to financial results, future performance, development of products and services, and the size and potential growth of current or future markets for its products and services. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the impact of COVID-19 on the Company’s business, including issues relating to Omicron or other variants; the ability to recognize the anticipated benefits of the business combination; the Company’s ability to grow and manage growth profitably; the success, cost and timing of the Company’s product and service development activities; the potential attributes and benefits of the Company’s products and services; the degree to which our products and services are accepted by healthcare practitioners and patients for their approved uses; the Company’s ability to obtain and maintain regulatory approval for its products, and any related restrictions and limitations of any approved product; the Company’s ability to identify, in-license or acquire additional technology; the Company’s ability to maintain its existing license, manufacture, supply and distribution agreements; manufacturing and supply of the Company’s products; the Company’s ability to compete with other companies currently marketing or engaged in the development of products and services that the Company is currently marketing or developing; changes in applicable laws or regulations; the size and growth potential of the markets for the Company’s products and services, and its ability to serve those markets, either alone or in partnership with others; the pricing of the Company’s products and services and reimbursement for medical procedures conducted using its products and services; the Company’s estimates regarding expenses, revenue, capital requirements and needs for additional financing; the Company’s financial performance; the Company’s ability to raise financing in the future; and other risks and uncertainties indicated from time to time in the Company’s most recent Annual Report on Form 10-K or in subsequent filings that it makes with the
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
Three months ended |
|
Year ended |
||||||||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
| Revenue: | ||||||||||||||||
| Product | $ | 14,413 |
|
$ | 12,527 |
|
$ | 47,868 |
|
$ | 38,347 |
|
||||
| Subscription | 4,574 |
|
3,128 |
|
14,697 |
|
7,905 |
|
||||||||
| Total revenue | $ | 18,987 |
|
$ | 15,655 |
|
$ | 62,565 |
|
$ | 46,252 |
|
||||
| Cost of revenue: | ||||||||||||||||
| Product | 8,218 |
|
11,028 |
|
29,308 |
|
46,294 |
|
||||||||
| Subscription | 887 |
|
(192 |
) |
2,238 |
|
1,068 |
|
||||||||
| Loss (gain) on product purchase commitments | 2,342 |
|
(3,880 |
) |
13,965 |
|
60,113 |
|
||||||||
| Total cost of revenue | $ | 11,447 |
|
$ | 6,956 |
|
$ | 45,511 |
|
$ | 107,475 |
|
||||
| Gross profit | $ | 7,540 |
|
$ | 8,699 |
|
$ | 17,054 |
|
$ | (61,223 |
) |
||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 20,002 |
|
$ | 13,311 |
|
74,461 |
|
49,738 |
|
||||||
| Sales and marketing | 15,054 |
|
8,855 |
|
49,604 |
|
26,263 |
|
||||||||
| General and administrative | 17,789 |
|
8,744 |
|
85,717 |
|
24,395 |
|
||||||||
| Total operating expenses | 52,845 |
|
30,910 |
|
209,782 |
|
100,396 |
|
||||||||
| Loss from operations | $ | (45,305 |
) |
$ | (22,211 |
) |
$ | (192,728 |
) |
$ | (161,619 |
) |
||||
| Interest income | $ | 834 |
|
$ | 47 |
|
2,573 |
|
285 |
|
||||||
| Interest expense | (6 |
) |
(723 |
) |
(651 |
) |
(1,141 |
) |
||||||||
| Change in fair value of warrant liabilities | 30,567 |
|
— |
|
161,095 |
|
— |
|
||||||||
| Other income (expense), net | (1,257 |
) |
(48 |
) |
(2,577 |
) |
(231 |
) |
||||||||
| Loss before provision for income taxes | $ | (15,167 |
) |
$ | (22,935 |
) |
$ | (32,288 |
) |
$ | (162,706 |
) |
||||
| Provision for income taxes | 49 |
|
7 |
|
121 |
|
39 |
|
||||||||
| Net loss and comprehensive loss | $ | (15,216 |
) |
$ | (22,942 |
) |
$ | (32,409 |
) |
$ | (162,745 |
) |
||||
| Net loss per common share attributable to Class A and B common stockholders, basic and diluted | $ | (0.08 |
) |
$ | (3.73 |
) |
$ | (0.19 |
) |
$ | (26.87 |
) |
||||
| Weighted-average shares used to compute net loss per share attributable to Class A and B common stockholders, basic and diluted | 198,004,664 |
|
6,145,688 |
|
173,810,053 |
|
6,056,574 |
|
||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands, except share and per share amounts) | ||||||||
| (Unaudited) | ||||||||
|
||||||||
2021 |
|
2020 |
||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 422,841 |
|
$ | 60,206 |
|
||
| Accounts receivable, net | 11,936 |
|
5,752 |
|
||||
| Inventories | 36,243 |
|
25,805 |
|
||||
| Current portion of vendor advances | 27,500 |
|
2,571 |
|
||||
| Prepaid expenses and other current assets | 13,384 |
|
2,998 |
|
||||
| Total current assets | $ | 511,904 |
|
$ | 97,332 |
|
||
| Property and equipment, net | 14,703 |
|
6,870 |
|
||||
| Non-current portion of vendor advances | 12,782 |
|
37,390 |
|
||||
| Operating lease assets | 24,083 |
|
— |
|
||||
| Other non-current assets | 8,493 |
|
5,599 |
|
||||
| Total assets | $ | 571,965 |
|
$ | 147,191 |
|
||
| Liabilities, convertible preferred stock and stockholders’ equity (deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,798 |
|
$ | 16,400 |
|
||
| Deferred revenue, current | 13,071 |
|
8,443 |
|
||||
| Accrued purchase commitments, current | 5,329 |
|
22,890 |
|
||||
| Accrued expenses and other current liabilities | 25,631 |
|
21,962 |
|
||||
| Total current liabilities | $ | 49,829 |
|
$ | 69,695 |
|
||
| Deferred revenue, non-current | 5,476 |
|
2,790 |
|
||||
| Convertible debt | — |
|
49,528 |
|
||||
| Loan payable | — |
|
4,366 |
|
||||
| Warrant liabilities | 26,229 |
|
— |
|
||||
| Accrued purchase commitments, non-current | 14,200 |
|
19,660 |
|
||||
| Operating lease liabilities | 27,690 |
|
— |
|
||||
| Other non-current liabilities | 850 |
|
2,146 |
|
||||
| Total liabilities | $ | 124,274 |
|
$ | 148,185 |
|
||
| Convertible preferred stock: | ||||||||
| Convertible preferred stock (Series A, B, C and D) |
— |
|
360,937 |
|
||||
| Stockholders’ equity (deficit): | ||||||||
| Class A common stock |
17 |
|
1 |
|
||||
| Class B common stock |
3 |
|
— |
|
||||
| Additional paid-in capital | 874,886 |
|
32,874 |
|
||||
| Accumulated deficit | (427,215 |
) |
(394,806 |
) |
||||
| Total stockholders’ equity (deficit) | $ | 447,691 |
|
$ | (361,931 |
) |
||
| Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ | 571,965 |
|
$ | 147,191 |
|
||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
Year ended |
||||||||
2021 |
|
2020 |
||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (32,409 |
) |
$ | (162,745 |
) |
||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 2,090 |
|
1,316 |
|
||||
| Write-down of vendor advance | 2,300 |
|
10,560 |
|
||||
| Non-cash interest expense on convertible debt | 389 |
|
1,047 |
|
||||
| Write-down of inventories | 889 |
|
7,123 |
|
||||
| Stock-based compensation expense | 47,798 |
|
11,004 |
|
||||
| Change in fair value of warrant liabilities | (161,095 |
) |
— |
|
||||
| Other | 1,900 |
|
1,966 |
|
||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (6,127 |
) |
(4,377 |
) |
||||
| Inventories | (11,285 |
) |
(23,487 |
) |
||||
| Prepaid expenses and other assets | (10,669 |
) |
(20 |
) |
||||
| Vendor advances | (2,621 |
) |
1,658 |
|
||||
| Accounts payable | (10,521 |
) |
11,175 |
|
||||
| Deferred revenue | 7,314 |
|
7,446 |
|
||||
| Accrued purchase commitments | (23,063 |
) |
42,550 |
|
||||
| Change in operating lease assets and liabilities | 1,901 |
|
— |
|
||||
| Accrued expenses and other liabilities | 4,022 |
|
13,084 |
|
||||
| Net cash used in operating activities | $ | (189,187 |
) |
$ | (81,700 |
) |
||
| Cash flows from investing activities: | ||||||||
| Purchases of marketable securities | (1,019,003 |
) |
— |
|
||||
| Sales of marketable securities | 1,017,010 |
|
— |
|
||||
| Purchases of property and equipment | (7,877 |
) |
(2,376 |
) |
||||
| Net cash used in investing activities | $ | (9,870 |
) |
$ | (2,376 |
) |
||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of stock options and warrants | 21,707 |
|
2,038 |
|
||||
| Net proceeds from equity infusion from the Business Combination | 548,403 |
|
(657 |
) |
||||
| Proceeds from loan payable | — |
|
4,366 |
|
||||
| Proceeds from issuance of convertible debt | — |
|
50,000 |
|
||||
| Payment of loan payable | (4,366 |
) |
— |
|
||||
| Payments of debt issuance costs | (52 |
) |
(1,467 |
) |
||||
| Net cash provided by financing activities | $ | 565,692 |
|
$ | 54,280 |
|
||
| Net (decrease) increase in cash, cash equivalents and restricted cash | $ | 366,635 |
|
$ | (29,796 |
) |
||
| Cash, cash equivalents and restricted cash, beginning of period | 60,206 |
|
90,002 |
|
||||
| Cash, cash equivalents and restricted cash, end of period | $ | 426,841 |
|
$ | 60,206 |
|
||
| Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets | ||||||||
| Cash and cash equivalents | $ | 422,841 |
|
$ | 60,206 |
|
||
| Restricted cash | 4,000 |
|
— |
|
||||
| Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ | 426,841 |
|
$ | 60,206 |
|
||
| Supplemental disclosure of non-cash investing and financing activities | ||||||||
| Purchase of property and equipment | 1,841 |
|
564 |
|
||||
| Deferred offering costs and debt issuance costs | — |
|
3,106 |
|
||||
| ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
Three months ended |
|
Year ended |
||||||||||||||
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||||
| Revenue | $ | 18,987 |
|
$ | 15,655 |
|
$ | 62,565 |
|
$ | 46,252 |
|
||||
| Cost of revenue | 11,447 |
|
6,956 |
|
45,511 |
|
107,475 |
|
||||||||
| Gross profit | $ | 7,540 |
|
$ | 8,699 |
|
$ | 17,054 |
|
$ | (61,223 |
) |
||||
| Gross margin | 39.7 |
% |
55.6 |
% |
27.3 |
% |
(132.4 |
)% |
||||||||
| Add: | ||||||||||||||||
| Depreciation and amortization | 245 |
|
71 |
|
536 |
|
140 |
|
||||||||
| Warranty liability policy change | — |
|
— |
|
(560 |
) |
— |
|
||||||||
| Loss (gain) on purchase commitments | 2,342 |
|
(3,880 |
) |
13,965 |
|
60,113 |
|
||||||||
| Inventory write-downs | — |
|
— |
|
582 |
|
2,570 |
|
||||||||
| Adjusted gross profit | $ | 10,127 |
|
$ | 4,890 |
|
$ | 31,577 |
|
$ | 1,600 |
|
||||
| Adjusted gross margin | 53.3 |
% |
31.2 |
% |
50.5 |
% |
3.5 |
% |
||||||||
| ADJUSTED EBITDA | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
Three months ended |
|
Year ended |
||||||||||||||
| (In thousands) | 2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
| Net loss | $ | (15,216 |
) |
$ | (22,942 |
) |
$ | (32,409 |
) |
$ | (162,745 |
) |
||||
| Interest income | (834 |
) |
(47 |
) |
(2,573 |
) |
(285 |
) |
||||||||
| Interest expense | 6 |
|
723 |
|
651 |
|
1,141 |
|
||||||||
| Change in fair value of warrant liabilities | (30,567 |
) |
— |
|
(161,095 |
) |
— |
|
||||||||
| Other expense, net | 1,257 |
|
48 |
|
2,577 |
|
231 |
|
||||||||
| Provision for income taxes | 49 |
|
7 |
|
121 |
|
39 |
|
||||||||
| Stock based compensation | 9,029 |
|
3,277 |
|
47,798 |
|
11,004 |
|
||||||||
| Depreciation and amortization | 670 |
|
412 |
|
2,090 |
|
1,316 |
|
||||||||
| CEO transition costs | — |
|
— |
|
5,398 |
|
— |
|
||||||||
| Warranty liability policy change | — |
|
— |
|
(560 |
) |
— |
|
||||||||
| Transaction bonus | — |
|
— |
|
1,653 |
|
— |
|
||||||||
| Impairments | — |
|
1,390 |
|
— |
|
1,390 |
|
||||||||
| Loss (gain) on purchase commitments | 2,342 |
|
(3,880 |
) |
13,965 |
|
60,113 |
|
||||||||
| Inventory write-downs | — |
|
— |
|
582 |
|
2,570 |
|
||||||||
| Adjusted EBITDA | $ | (33,264 |
) |
$ | (21,012 |
) |
$ | (121,802 |
) |
$ | (85,226 |
) |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220228005228/en/
Investors
650.677.9138
alee@butterflynetwork.com
Media
781.888.8219
hspring@butterflynetwork.com
Source:
FAQ
What was Butterfly Network's revenue growth in 2021?
What are Butterfly Network's financial expectations for 2022?
How did Butterfly Network perform in the fourth quarter of 2021?
