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01/10 16:57
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
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 net proceeds.
New Product Launches: Upcoming launch of Compass2.0 software with new features and capabilities expected to fill unmet needs in POCUS.
AI Marketplace: Introduction of Butterfly Garden, an AI marketplace with 23 partners, aiming to launch FDA-cleared clinical applications this year.
Home Care Solutions: Expansion of home care program targeting congestive heart failure patients, with pilot activities showing no readmissions.
Market Expansion: Continued expansion in Asia and Latin America, targeting high-potential global health markets.
Medical School Programs: Increased adoption of personal probes by medical schools, with significant orders from institutions for student programs.
Operational Efficiency: Improved gross margins to 63% and reduced adjusted EBITDA loss from $13.2 million to $9.1 million year-over-year.
Revenue Growth: Achieved 20% revenue growth in Q1 2025, totaling $21.2 million, driven by higher sales volume and product pricing.
Strategic Partnerships: Secured partnerships in the generative AI space and with NGOs for global health initiatives.
Enterprise Strategy: On the verge of signing a second hospital enterprise customer to integrate Compass software across their network.
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, which may impact the global health business.
Tariff Impacts: If tariffs were to be in effect, the company estimates additional costs of under $1 million at 10% and just over $1.5 million at 36% on an annualized basis.
Supply Chain Challenges: The company is looking at alternative assembly locations to mitigate potential tariff impacts.
Market Competition: The company faces competitive pressures as it aims to maintain its leadership in ultrasound technology.
Revenue Growth: Butterfly Network expects approximately 20% growth in revenue for the full year 2025.
Adjusted EBITDA Loss: Guidance for adjusted EBITDA loss is projected to be in the range of $37 million to $42 million for the full year.
Q2 Revenue Guidance: For Q2 2025, revenue is guided to be between $23 million to $24.5 million.
Q2 Adjusted EBITDA Loss: Adjusted EBITDA loss for Q2 2025 is expected to be between $9 million to $10 million.
Strategic Initiatives: Butterfly is focusing on expanding its AI marketplace (Butterfly Garden), launching new software (Compass2.0), and enhancing its home care services.
Partnerships: Butterfly is in discussions with over 25 prospects for its Octiv program, including major players in various industries.
Home Care Pilot: The pilot program for congestive heart failure patients has shown no readmissions, indicating potential for commercial expansion.
Revenue Expectations: Butterfly anticipates $21.2 million in revenue for Q1 2025, with a 20% growth target for the year.
Gross Margin: Gross margins improved to 63% in Q1 2025, up from 58% in the prior year.
Cash Position: Butterfly ended Q1 2025 with $155 million in cash and cash equivalents.
Tariff Impact: Potential tariff impacts estimated at under $1 million at 10% and just over $1.5 million at 36% for 2025.
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.
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