Butterfly Network, Inc. ((BFLY)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for Butterfly Network, Inc. was marked by a generally positive sentiment, as the company reported strong revenue growth and successful product launches. The call highlighted the company’s international expansion efforts and a recent capital raise, which are expected to support future growth. However, the discussion also acknowledged ongoing challenges, such as adjusted EBITDA losses and higher production costs, with new initiatives yet to significantly impact revenue.
Strong Revenue Growth
Butterfly Network reported impressive revenue figures for 2024, achieving $82.1 million, which represents a 25% increase in top-line growth. The fourth quarter was particularly noteworthy, with revenue climbing 35% compared to the previous year, reaching $22.4 million—the highest quarterly result in the company’s history.
iQ3 Commercial Success
The launch of the iQ3 device proved to be a commercial triumph, contributing significantly to the company’s sales. The iQ3 accounted for 50% of the total sales units and 58% of probe revenue in 2024, delivering higher average selling prices than its predecessor.
International Expansion
Butterfly Network’s international expansion gained momentum with the receipt of EU MDR for the iQ+ and iQ3 devices. This approval facilitates the European launch and opens new market opportunities in Asia, setting the stage for international growth in 2025.
Successful Capital Raise
In January 2025, Butterfly Network successfully raised $81.7 million through a follow-on offering. This capital infusion is expected to bridge the company towards cash flow independence and support ongoing investment in growth initiatives.
Positive Developments in HomeCare
The company’s HomeCare segment showed promising results with a pilot agreement for lung ultrasound services in Wisconsin. The initiative led to improved care for congestive heart failure patients, with no patient readmissions reported.
Improved Adjusted EBITDA
Butterfly Network reported a 42% improvement in adjusted EBITDA loss for 2024, reducing the loss from $67.5 million in 2023 to $38.9 million in 2024. This improvement was driven by increased revenue and cost reductions.
Ongoing Adjusted EBITDA Loss
Despite the improvements, the company continues to face financial challenges, with an adjusted EBITDA loss of $38.9 million for the full year 2024, highlighting the need for continued financial discipline.
Higher Production and Warranty Costs
The benefits from gross margin improvements were offset by increased production costs associated with the iQ3 and higher warranty expenses, impacting overall profitability.
Limited Immediate Impact from New Initiatives
While strategic initiatives such as Octiv and HomeCare show potential, they have not yet contributed significantly to revenue and are not factored into the 2025 guidance.
Forward-Looking Guidance
Looking ahead, Butterfly Network has provided robust guidance for 2025, projecting revenue between $96 million and $100 million, reflecting approximately 20% growth. The company anticipates an adjusted EBITDA loss between $37 million and $42 million. Notably, this guidance does not include potential revenue from new ventures like the HomeCare business or future Octiv partnerships, which could offer substantial upside.
In summary, Butterfly Network’s earnings call conveyed a positive outlook, underpinned by strong revenue growth and successful product launches. While challenges such as adjusted EBITDA losses and higher production costs persist, the company’s international expansion and capital raise position it well for future growth. Investors will be keenly watching the impact of new initiatives and the company’s progress towards cash flow independence in the coming year.