Loading...
01/10 17:00
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed outlook. Positive aspects include strong revenue growth, improved gross margins, and successful product launches. However, concerns arise from funding uncertainties, competitive pressures, and a secondary offering which typically dilutes share value. The Q&A section reveals positive sentiment towards strategic partnerships and product adoption but lacks clarity on competitive positioning. Despite optimistic guidance, potential tariff impacts and supply chain issues pose risks. Overall, the stock price is likely to remain stable, with a neutral movement expected over the next two weeks.
Revenue $21.2 million, a 20% increase year-over-year, driven by higher sales volume in U.S. sales channels, the impact of the iQ3 probe's higher selling price, and delivery of semiconductor chips to new partners.
U.S. Revenue $16.6 million, a 24% increase year-over-year, driven by strong demand.
International Revenue $4.6 million, a 9% increase year-over-year, largely driven by price.
Product Revenue $14.2 million, a 25% increase year-over-year, largely driven by higher volume.
Software and Other Services Revenue $7.1 million, an 11% increase year-over-year, due to higher enterprise software revenue and increased licensing and services revenue, partially offset by lower renewals of individual subscriptions.
Gross Profit $13.4 million, a 30% increase year-over-year, with gross margin percentage increasing to 63% from 58%, positively impacted by higher average selling prices and improvements in software and services margin.
Adjusted EBITDA Loss $9.1 million, improved from a loss of $13.2 million year-over-year, driven by higher revenue, improved gross profit, and lower operating expenses.
Normalized Cash Burn $6.7 million during the quarter after adjusting for bonus payments.
Cash and Cash Equivalents $155 million at the end of the quarter, following a secondary public offering that generated $81 million in proceeds.
New Product Launches: Upcoming launch of Compass2.0 software with new features and capabilities.
AI Marketplace: Introduction of Butterfly Garden, an AI marketplace with 23 partners, including DESKi, which received FDA clearance for HEART Focus app.
Home Care Solutions: Expansion of home care program targeting congestive heart failure patients, with pilot activity showing no readmissions.
Market Expansion: Continued expansion in Asia and Latin America, targeting medical schools and hospitals.
International Revenue Growth: International revenue increased by 9% over the prior year, driven by pricing.
Operational Efficiency: Gross margins improved to 63% from 58% year-over-year, with a 30% increase in gross profit.
Adjusted EBITDA Improvement: Adjusted EBITDA loss improved from $13.2 million to $9.1 million year-over-year.
Strategic Partnerships: Secured partnerships in generative AI and medical imaging, with ongoing discussions with over 25 prospects.
Enterprise Selling Program: On the verge of signing a second hospital enterprise customer for Compass software integration.
Regulatory Issues: Potential regulatory approvals and uncertainties regarding healthcare funding may impact future performance.
Economic Factors: Global health funding cuts from USAID have delayed several opportunities, affecting international revenue.
Funding Uncertainty: Customers face increased uncertainty on funding through NIH, USAID, or Medicaid programs, impacting global health business.
Tariff Impacts: Possible tariffs on imports could incur additional costs, estimated under $1 million at 10% and just over $1.5 million at 36% annually.
Supply Chain Challenges: Delays in semiconductor chip delivery have affected product availability and sales.
Competitive Pressures: The need to maintain leadership in technology and pricing against competitors in the ultrasound market.
Strategic Initiatives: Butterfly has launched several strategic initiatives including the AI marketplace 'Butterfly Garden', a chip licensing program 'Octave', and 'Butterfly Home Care'. These initiatives are expected to contribute to revenue in 2025.
Enterprise Hospital Selling Program: Butterfly is on the verge of signing its second hospital enterprise customer, which plans to integrate Butterfly's software across its network, enhancing the enterprise strategy.
Home Care Pilot Program: The pilot program for home care has shown promising results, with no readmissions reported for congestive heart failure patients, indicating potential for commercial agreements by the end of 2025.
Compass2.0 Launch: Butterfly plans to launch Compass2.0 software in the second half of 2025, which will introduce new features and capabilities, creating a new revenue stream.
Revenue Guidance: Butterfly maintains its full-year guidance of approximately 20% growth in revenue, with second quarter revenue expected to be between $23 million and $24.5 million.
Adjusted EBITDA Loss Guidance: The adjusted EBITDA loss is projected to be in the range of $37 million to $42 million for the full year, with a second quarter loss expected between $9 million and $10 million.
Cash Position: Butterfly ended the quarter with cash and cash equivalents of $155 million, enabling continued investment in growth initiatives.
Secondary Public Offering: In January, Butterfly completed a secondary public offering of 27.6 million shares, generating proceeds of $81 million net of underwriting costs and related expenses.
The earnings call reveals mixed signals: strong product revenue growth and improved EBITDA loss contrast with a negative gross margin due to inventory write-off. Optimistic guidance for Compass AI and Octiv initiatives is offset by delayed deals and flat software revenue. Q&A highlights confidence in the pipeline but acknowledges extended sales cycles and uncertain timelines for partnerships. Without a market cap, the impact is hard to gauge, but overall, the balanced positives and negatives suggest a neutral sentiment, indicating a stock price movement between -2% and 2%.
The earnings call presents a mixed picture: while there is growth in international and product revenue, U.S. revenue remains flat, and software revenue is stagnant. The Q&A highlights delays in deals, but management remains optimistic about future prospects. The company's strategic initiatives and disciplined cash use are positive, but uncertainties in global health funding and competitive pressures temper enthusiasm. Overall, the sentiment is neutral, reflecting balanced positive and negative elements.
The earnings call highlights strong financial performance with 20% revenue growth and improved gross margins. Despite a secondary offering potentially affecting stock price, the substantial cash position and optimistic guidance, along with strategic partnerships and product success, indicate positive sentiment. The Q&A session further emphasized strong adoption and interest in their products, suggesting potential for continued growth. However, concerns about regulatory issues and economic factors pose risks. Overall, the positive factors outweigh the negatives, suggesting a likely stock price increase in the short term.
The earnings call presents a mixed outlook. Positive aspects include strong revenue growth, improved gross margins, and successful product launches. However, concerns arise from funding uncertainties, competitive pressures, and a secondary offering which typically dilutes share value. The Q&A section reveals positive sentiment towards strategic partnerships and product adoption but lacks clarity on competitive positioning. Despite optimistic guidance, potential tariff impacts and supply chain issues pose risks. Overall, the stock price is likely to remain stable, with a neutral movement expected over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
