• Revenue: $82.1 million for 2024, representing 25% growth.
• Q4 Revenue: $22.4 million, a 35% increase year-over-year.
• US Revenue: $14.5 million in Q4, up 32% year-over-year.
• International Revenue: $5.5 million in Q4, a 19% increase year-over-year.
• Product Revenue: $14.7 million in Q4, up 45% year-over-year.
• Software and Other Services Revenue: $7.6 million in Q4, a 20% increase year-over-year.
• Gross Profit: $13.7 million in Q4, a 45% increase year-over-year.
• Gross Margin: 61% in Q4, up from 57% in the prior year period.
• Adjusted EBITDA Loss: $38.9 million for 2024, a 42% improvement from 2023.
• Operating Expenses: 16% reduction for the full year 2024.
• Cash and Cash Equivalents: $92.8 million at year-end 2024.
• 2025 Revenue Guidance: $96 million to $100 million, approximately 20% growth.
• 2025 Adjusted EBITDA Loss Guidance: $37 million to $42 million.

• Warning! GuruFocus has detected 5 Warning Signs with BFLY.

Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Butterfly Network Inc (NYSE:BFLY) reported a 25% increase in revenue for 2024, reaching $82.1 million, with a significant improvement in adjusted EBITDA by 42%.
• The launch of the iQ3 device was a commercial success, representing 50% of 2024 sales and receiving the prestigious Prix Galien Award.
• Butterfly Network Inc (NYSE:BFLY) expanded its international presence with EU MDR certification for iQ+ and iQ3, facilitating European and Asian market penetration.
• The company successfully raised $81.7 million in a follow-on offering, providing a financial bridge to cash flow independence.
• Butterfly Network Inc (NYSE:BFLY) is actively developing strategic partnerships, including five new partners in areas like neuroscience and generative AI, expected to contribute revenue in 2025.

Negative Points

• Despite revenue growth, Butterfly Network Inc (NYSE:BFLY) still reported an adjusted EBITDA loss of $38.9 million for 2024.
• The company faces ongoing challenges with higher production and warranty costs impacting gross margins.
• Butterfly Network Inc (NYSE:BFLY) has not yet included potential revenue from new initiatives like Octiv or HomeCare in its 2025 guidance, indicating uncertainty in these areas.
• The transition from pilot to commercial revenue in the HomeCare channel remains uncertain, with no specific timeline provided.
• The company is still awaiting the EU Commission's decision on the revocation process for lead exemption in piezoelectric handheld ultrasound devices, which could impact future operations.

Q & A Highlights

Q: Can you provide an update on your confidence level in reaching the $500 million revenue target set during the 2024 Investor Day? A: Joseph DeVivo, CEO, expressed strong confidence in reaching the target, highlighting that the company is on track with its growth initiatives. He emphasized the potential of the Octiv and HomeCare businesses to contribute significantly to future growth, noting that Octiv's pipeline is expanding with larger partners, and the HomeCare business is proving its model with promising pilot results.

Q: What steps are required to transition the HomeCare pilot into a revenue-generating franchise, and what timelines can you share? A: Joseph DeVivo explained that the transition involves training partner staff rather than hiring new personnel, which accelerates the process. The pilot is designed for 200 patients, and the company is seeing positive results. The scalability of the model, using telemedicine and remote follow-up, suggests a promising future for commercial opportunities.

Q: Can you provide an update on the development of the wearable ultrasound device and its potential market impact? A: Joseph DeVivo stated that the wearable device is in active development, but the focus is on building the use case first. As the HomeCare business gains traction, the wearable will be introduced to meet the demand. The strategy is to develop the market and user base before launching the device.

Q: How does the FY25 guidance account for new revenue streams like Octiv and HomeCare? A: Heather Getz, CFO, clarified that the guidance includes existing Octiv contracts but excludes new contracts or revenue from HomeCare and other new business initiatives. The guidance focuses on traditional revenue streams from iQ+ and iQ3 devices and existing software and services.

Q: What evidence supports the claim that Butterfly's image quality is as good as competitors'? A: Joseph DeVivo explained that the iQ3 has closed the gap in image quality with other handheld devices, as evidenced by internal surveys and market feedback. The iQ3 is now part of the conversation among top devices, with users expressing preferences for its image quality, which was not the case before.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.